Charge to corporation tax

By Tolley

The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Charge to corporation tax
  • Which types of entity are within the charge to corporation tax?
  • Residence
  • Chargeable accounting periods
  • Duty to give notice of chargeability to corporation tax
  • Corporation tax returns and computations

Whether an entity is within the charge to corporation tax depends on the type of entity and its territory of residence.

Which types of entity are within the charge to corporation tax?

UK corporation tax is charged on profits generated by any corporate body or unincorporated association.

This includes the following types of entity:

  • limited companies (including companies limited by guarantee)
  • unlimited liability companies
  • members’ clubs
  • political associations
  • trade associations

The following types of entity are not within the charge to corporation tax:

  • partnerships
  • limited liability partnerships
  • local authority associations
  • local authorities

A company is any body which has been incorporated and a limited liability company will generally be denoted with the terms Ltd (Limited) or plc (public limited company). An unlimited liability company will not have such letters at the end of its name. There are different ways in which a company can be incorporated, but the method does not matter for tax purposes. Usually, a company will be registered at Companies House.

EU regulations permit the formation of a Societas Europaea (SE), a European company. The SE will be subject to the tax rules of the country in which it is resident.

More on Corporation tax computations: