The Schedules
| Scope | |
|---|---|
| Schedule A | Income from UK land |
| Schedule D | Taxable income not falling within another Schedule |
| Schedule F | Income from UK dividends |
| Chargeable gains | Gains as defined by legislation that are not taxed as income |
| CFC charge | Profits made by controlled foreign companies where no exemption applies |
Notes:
- The heads of charge listed above are mutually exclusive. No income or gain can fall within more than one head of charge.
- In practice companies do not get taxed under Schedule F. Most companies are exempted from Schedule F and there is a provision for those companies which are taxed on UK dividends (i.e. dealers in shares (stock)) that removes the charge from Schedule F to Schedule D.
- A controlled foreign company ("CFC") is a company controlled by a UK resident that is not itself UK resident and is subject to a lower rate of tax in the territory in which it is resident. Under certain circumstances, UK resident companies that control a CFC pay corporation tax on what the UK tax profits of that CFC would have been. However, because of a wide range of exemptions, very few companies suffer a CFC charge.
- There used to be a Schedule B and a Schedule C that applied to companies, but these have now been merged with Schedule D. Schedule E, which was repealed in 2003, only applied to individuals.
- Authorised unit trusts are not liable to tax on their chargeable gains.
Read more about this topic: Schedular System Of Taxation
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