Module 4

Business Taxation and Corporation Tax

Task
Hopefully, you took in as much of the information in this fourth
module as possible. To find out how well you have done,
complete the following worksheet.

We recommend that you allocate at least 30 minutes

to this worksheet.

SELF-MARKING

At the end of the worksheet is a convenient answers/feedback

and advice section to allow you to see how well you have done.

YOU ARE NOT REQUIRED TO RETURN THIS WORKSHEET

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 Activity #1 10 minutes

Write a paragraph to explain why the UK is one of the most attractive countries in which
to locate an international business

Write or type your answer here

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 Activity #2 10 minutes

This module discussed corporation tax relief for innovative or creative industries. List
three tax reliefs that we mentioned in this context and outline who they apply to

Write or type your answer here

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 Activity #3 10 minutes

Work your way through the following paragraphs and insert the most appropriate words
to fill in the missing blanks. There are 10 for you to have a go at in all

A Capital 1 Tax is a tax that businesses incur when they make a

2 from selling all or part of a business asset. Business 3 may include
land and buildings, fixtures and fittings, 4 and machinery, shares from the
business, registered 5 and your business’s reputation.

6 tax is a tax 7 on the taxable profits of limited 8 , any

foreign company that operates a branch in the UK, any club, co-operation, and
unincorporated organisations.

Companies based in the UK must pay corporation tax on all taxable 9 no matter
if they come from outside or inside the UK. If an 10 company decides to expand
in the UK (open up a branch) then it will only need to pay corporation tax on profits that
arise in the UK.

Write or type your answer here

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 Answers/feedback and advice section
Use this section to check your answers and see how well you have done
You are not required to return this worksheet

Activity #1

Advice and Feedback

The paragraph you have written should be close to the following:

The UK is a preferred business destination not only because of its first class
infrastructure and high quality talent but also because of its tax system. The UK
encourages innovation and creation of new business ventures by offering flexible
taxation and many reliefs to offset the impact of corporation tax on small and medium
sized businesses.

Activity #2

Answers

Patent box – reducing tax on profit applicable to high-tech companies selling patents
R&D Relief – for companies working on projects to advance science and technology
Creative Industry Tax Relief – qualifying companies must be directly engaged in
children’s animations or games production, or in any theatrical productions

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 Activity #3

Answers

1. Gains 2. Profit 3. Assets 4. Plant 5. Trademarks

6. Corporation 7. Levied 8. Companies 9. Profits 10. International

“
SUMMARY
Now that you have studied Module 4, it is time to decide if you feel you are ready
to move on to the next module. Even if you struggled only slightly in this module,
make sure you take the time to read through the material one more time.
“

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