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.
**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
‘Bed and breakfasting’ was the pre-1998 practice of selling shares and repurchasing them the following day. This technique can still be used in a modified form to achieve capital gains tax (CGT) savings for current or future tax years using:•a spouse / civil partner•a self-invested pension plan
Statutory references to ITTOIA 2005 relate to unincorporated businesses and CTA 2009 relate to companies unless otherwise stated.Legal and other professional fees can represent substantial costs to a business. A detailed analysis is often required for the purpose of preparing tax computations as
Once a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the taxpayer.CorrectionHMRC has the right to amend the tax
When does a trust come to an end?A trust may come to an end because it has run its course and comes to a natural end. If a trust has no assets , it ceases to exist. Alternatively, a trust ends because the trustees or beneficiaries decide to wind it up: the trustees distribute the assets by