The current rate of Supplementary Charge is 10%, reduced from 20% with effect from 1 January 2016.
Over the years the SC rate has endured various changes due to the dynamic economic climate. Originally in 2002, the rate was 10%, which increased to 20% in 2006 and to 32% in respect of profits accruing after 23 March 2011. The rate then underwent a reduction to 20% for accounting periods beginning on or after 1st January 2015. It was subsequently reduced to 10% for accounting periods beginning on or after 1st January 2016. However the relief for decommissioning expenditure for any work undertaken afer 21st March 2012 was limited to 20% when the rate exceeded 20%.
The tax base of profits subject to SC is the ring fence profits of the company chargeable to CT after removing financing costs and deducting any Field, Cluster, or Investment allowances available. Field, Cluster and Investment Allowances can reduce the company profits subjected to SC.
In 2015 the Finance Act introduced a unified Investment Allowance, replacing the majority of other Field Allowances.
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