net basis of calculating earnings per share

Definition:

a method of calculating earnings per share of a company subject to UK corporation tax in which the charge for taxation used in determining earnings includes (a) any irrecoverable ACT (abolished 1999); and (b) any tax due outside the UK on the payment or proposed payment of dividends where the dividend payment is taxable in the UK and the UK tax authorities refuse to allow the payment of non-UK tax to be deducted from the amount of UK tax due (such tax is called ‘unrelieved overseas tax’). Compare ‘nil distribution basis of calculating earnings per share’.



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