Companies are subject to corporation tax on chargeable gains, rather than capital gains tax1.
The liability of companies to corporation tax on chargeable gains depends on the residence of the company.
Definition of company
For corporation tax purposes, the term 'company' means any body corporate or unincorporated association, but does not include a partnership, a co-ownership scheme, local authority or local authority association2.
The definition thus includes all companies (whether limited or unlimited), members' clubs, trade unions and professional bodies. This is discussed in more detail in D1.104.
Unit trusts are treated as companies for capital gains tax purposes but not for corporation tax purposes3. See C1.209.
Health service bodies are expressly exempt from both capital gains tax and corporation tax (as well as income tax)4. See D1.203.
Companies which are investment trusts or venture capital trusts (VCT) are exempt from tax in respect of chargeable gains5. See D7.301 (definition of investment companies, including investment trusts) and E3.230 (tax treatment of VCT).
For the tax treatment of UK and European Economic Interest Groupings, which are co-operative ventures, see D4.501 and