Basic principles

Who pays corporation tax?

Corporation tax is payable by 'companies', which includes any body corporate and unincorporated associations.

A company that is tax resident in the UK is generally subject to UK corporation tax on its worldwide profits. A company that is not tax resident in the UK may still be subject to UK corporation tax in certain circumstances, including:

1. •

   (for disposals of UK land on or after 5 July 2016) in respect of profits from a trade of dealing in or developing UK land (for more information, see Practice Note: Transactions in UK land—tax rules)

2. •

   if it carries on a trade (other than a trade of dealing in or developing UK land) in the UK through a permanent establishment (PE), in which case it is subject to UK corporation tax in respect of the profits attributable to its UK PE (for more information, see Practice Notes: What is a UK permanent establishment? and How is a UK permanent establishment taxed?)

3. •

   if it disposes (directly or indirectly—this includes a sale of shares in a property rich company) of UK land on or after