The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
A company is liable to corporation tax in respect of its chargeable gains. The total chargeable gains arising in an accounting period, after deducting allowable capital losses arising in the period or carried forward from previous periods, are included as part of the company’s taxable total profits and taxed at the rate of corporation tax in force for the relevant financial year. See the Computation of corporation tax guidance note for details of the latest rates.
A chargeable gain or allowable loss may arise when a company disposes of an asset by way of sale, gift or in any other manner. The receipt of a capital sum in respect of compensation for the damage or destruction of a company asset may also give rise to a chargeable gain. Disposals of assets subject to the corporate intangibles regime do not give rise to chargeable gains. Instead, gains and losses are dealt with under that regime. See the Corporate intangibles tax regime ― overview guidance note for further details on disposals of intangible assets.
All companies that are treated as resident in the UK are liable to corporation tax on their chargeable gains, wherever the asset is situated.
A non-UK resident company is liable to corporation tax only on chargeable gains on disposal of:
where the company carries on a trade in the UK via a permanent establishment, UK assets with a connection to the permanent establishment
interests in UK land
interests in ‘UK property rich’
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
RDEC ― large company R&D reliefSince 1 April 2016, or from 1 April 2013 by election, large company R&D relief is given through research and development expenditure credits (RDEC), which is a taxable credit payable to the company. As the credit is taxable, it is also sometimes called an above the
Usually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note for further details.This rule can be
This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees
Investors’ relief is a capital gains tax (CGT) relief on the disposal of qualifying shares in an unlisted company. A taxpayer making a disposal that qualifies for investors’ relief will pay tax at a rate of 10%.Although it is a separate relief, the rules for investors’ relief were intended as an