The Schedular system of taxation is the system of how the charge to United Kingdom corporation tax is applied. It also applied to United Kingdom income tax before legislation was rewritten by the Tax Law Rewrite Project. Similar systems apply in other jurisdictions that are or were closely related to the United Kingdom, such as Ireland and Jersey.
Under the source rule, tax is levied on a source of income or gain only if there is a specific provision taxing that income or gain. The levies to tax on income were original set out in Schedules to the Income Tax Act. In the case of United Kingdom corporation tax, they remain for companies charged to that tax, and in the case of United Kingdom income tax, many, but not all remain.
In the United Kingdom the source rule applies. This means that something is taxed only if there is a specific provision bringing it within the charge to tax. Accordingly, profits are only charged to corporation tax if they fall within one of the following, and are not otherwise exempted by an explicit provision of the Taxes Acts:
Read more about Schedular System Of Taxation: The Schedules
Famous quotes containing the words system and/or taxation:
“The moral immune system of this country has been weakened and attacked, and the AIDS virus is the perfect metaphor for it. The malignant neglect of the last twelve years has led to breakdown of our country’s immune system, environmentally, culturally, politically, spiritually and physically.”
—Barbra Streisand (b. 1942)
“Every diminution of the public burdens arising from taxation gives to individual enterprise increased power and furnishes to all the members of our happy confederacy new motives for patriotic affection and support.”
—Andrew Jackson (1767–1845)