What is Corporation Tax & Are You Liable?
What is Corporation Tax and who is subject to Corporation Tax requirements? Corporation Tax is a tax on the taxable profits of limited companies and some organisations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.
Taxable profits for Corporation Tax include:
If your company isn’t based in the UK but operates in the UK – for example through an office or branch (known to HMRC as a ‘permanent establishment’) – you’ll only have to pay Corporation Tax on any taxable profits arising from your UK activities.
Who is subject to Corporation Tax requirements The following limited companies and unincorporated organisations are subject to Corporation Tax requirements:
A company or organisation subject to Corporation Tax requirements is known to HMRC for Corporation Tax purposes as being ‘within the charge to Corporation Tax’, ‘chargeable to tax’ or in ‘the charge to tax’.
For more information or advise please contact us here at CASA on 07798 873077 ([email protected]) where we will be happy to help.
Taxable profits for Corporation Tax include:
- profits from taxable income such as trading profits and investment profits (except dividend income which is taxed differently)
- capital gains – known as ‘chargeable gains’ for Corporation Tax purposes
If your company isn’t based in the UK but operates in the UK – for example through an office or branch (known to HMRC as a ‘permanent establishment’) – you’ll only have to pay Corporation Tax on any taxable profits arising from your UK activities.
Who is subject to Corporation Tax requirements The following limited companies and unincorporated organisations are subject to Corporation Tax requirements:
- limited companies incorporated in the UK
- foreign-based companies with a permanent place of business in the UK
- members’ clubs, such as social clubs, sports clubs and holiday clubs
- societies, such as friendly societies and provident societies
- associations, such as housing associations and trade associations
- co-operatives
- other unincorporated associations
- groups of individuals carrying on a business that is not a partnership
- charities, or companies that are subsidiaries of – or wholly owned by – a charity
- NHS foundation trusts if they are carrying out significant commercial activities that are not part of core health care delivery, such as running a commercial laundry
A company or organisation subject to Corporation Tax requirements is known to HMRC for Corporation Tax purposes as being ‘within the charge to Corporation Tax’, ‘chargeable to tax’ or in ‘the charge to tax’.
For more information or advise please contact us here at CASA on 07798 873077 ([email protected]) where we will be happy to help.