Corporation Tax

Like regular income tax, corporation tax is applied to a company's taxable income or profits. Companies are under obligation to inform HM Revenue and Customs that they exist and that they are liable to tax. They then have to:

  • Work out their own tax liability
  • Pay their tax without prior assessment by the Inland Revenue
  • Pay penalties if they do not deliver their tax return by the statutory filing date (normally 12 months after the end of the accounting period)

Companies subject to tax include:

  • Members' clubs, societies and associations
  • Trade associations
  • Housing associations
  • Groups of individuals carrying on a business but not as a partnership (e.g. cooperatives)

Corporation tax rates vary depending on the size of the company, such as standard companies, small companies, marginal small companies and unit trusts and open-ended investment companies.

Disclaimer: Every effort is made to keep the site accurate, however please bear in mind that tax rates are subject to change. If you require tax advice you should speak to a professional tax adviser.