Basic principles

Who pays corporation tax?

Corporation tax is payable by 'companies', which includes any body corporate and unincorporated associations, but it does not include a partnership, a co-ownership scheme, a local authority or a local authority association.

A UK limited liability partnership (LLP) is s a body corporate for company law purposes, but is generally taxed as though it were a partnership (ie it is tax transparent) rather than as a company. For more information, see Practice Note: Taxation of UK LLPs.

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...