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Tax levied on the income of companies is often called corporate income tax or corporation tax, although some jurisdictions impose income tax on companies.

1 History of income tax in the UK

Income tax was first introduced in Britain by

Income tax was levied under 5 schedules - income not falling within those schedules was not taxed. The schedules were:

Schedule A (tax on income from UK land) Schedule B (tax on commercial occupation of land) Schedule C (tax on income from public securities) Schedule D (tax on trading income, income from professions and vocations, interest, overseas income and casual income) Schedule E (tax on employment income)

Later a sixth Schedule, Schedule F (tax on UK dividend income) was added.

Pitt's income tax was levied from 1799 to 1802, when it was abolished by Henry Addington during the Peace of Amiens. Addington had taken over as prime minister in 1801Events January 1 Legislative union of Great Britain and Ireland completed under the Act of Union 1800, bringing about the United Kingdom of Great Britain and Ireland. January 1 Giuseppe Piazzi discovers the first (and largest) asteroid Ceres. January 20 J, after Pitt's resignation over Catholic EmancipationCatholic Emancipation was a process in Great Britain and Ireland in the late 18th century and early 19th century which involved reducing and removing many of the restrictions on Roman Catholics which had been introduced by the Act of Uniformity and the Te. Income tax was reintroduced by Addington in 1803Events January 30 Monroe and Livingston sail for Paris to discuss, and possibly buy, New Orleans. They end completing the Louisiana Purchase. February 24 The Supreme Court of the United States, in Marbury v. Madison establishes the principle of judicial r when hostilities recommenced, but it was again abolished in 1816Events March 25 Friedrich Karl Ludwig, Duke of Schleswig-Holstein-Sonderburg-Beck dies and is succeeded by the later Friedrich Wilhelm, Duke of Schleswig-Holstein-Sonderburg-Glucksburg, his son and founder of the Schleswig-Holstein-Sonderburg-Glucksburg., one year after the Battle of WaterlooThe Battle of Waterloo fought on June 18, 1815, was Napoleon Bonaparte's last battle. After his exile to Elba, he had been restored to the throne of France for a Hundred Days. During this time, the forces of the rest of Europe converged on him, including.

Finally, income tax was reintroduced in 1842Events February 21 John J. Greenough patents the sewing machine. March 5 Over 500 Mexican troops led by Rafael Vasquez invade Texas briefly occupy San Antonio and then head back to the Rio Grande. This is the first such invasion since the Texas Revolution by Sir Robert Peel. Peel, as a Conservative, had opposed income tax in the 1841 general election, but a growing budget deficit required a new source of funds. The new income tax, based on Addington's model, was imposed on incomes above £150.

Income tax has changed over the years - it used to be a tax on income regardless of who was beneficially entitled to it. A person is now levied only on income to which they are beneficially entitled. Also, most companies were taken out of the income tax net in 1965 when corporation tax was introduced.

Also the Schedules under which tax is levied have changed. Schedule B was abolished in 1988, Schedule C in 1996 and Schedule E in 2003, though the Schedular system and Schedules A, D and F still remain.

Rates peaked in the late 1970s at 99%.

Income tax remains an annual tax, and is reimposed each year in the annual Finance Act.

Income tax has a number of bands: 10% (lower rate), 20% (basic rate for interest), 22% (basic rate), 32.5% (higher rate for UK dividends) & 40% (higher rate for other income).