The system of Corporation Tax used in the UK since 1972. Dividends distributed to shareholders are subject to tax, but taxes on company profits collected in Advance Corporation Tax (ACT) are treated as tax credits at basic rate for investors receiving dividends. Shareholders have the grossed-up value of their dividends treated as taxable income: if the basic rate of tax is t, the grossed up value of dividends is the amount received times 1/(1 - t). With basic rate tax already paid, shareholders are only liable for the excess of their own marginal tax rate over basic rate, and can claim refunds if their marginal rate of tax is lower than basic rate or if they are not subject to income tax.

• direct labour
• director
• directorates, interlocking
• direct tax
• dirigisme
• dirty floating
• discomfort index
• discount
• discounted cash flow
• discounted present value
• discount house
• discounting the future
• discount rate
• discount window
• discouraged worker
• discrete distribution
• discrete time
• discrete variable
• discretionary policy
• discretionary spending
• discriminating monopoly
• discrimination
• disease, Dutch
• diseconomies of scale
• diseconomy, external