Charge to corporation tax

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

Whether an entity is within the charge to corporation tax or not 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 worldwide 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
•
authorised unit trusts

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

•
partnerships
•
limited liability partnerships
•
local authority associations
•
local authorities
•
a co-ownership scheme

CTA 2009, s 1121

There are different ways in which a company can be incorporated, but the method does not matter for corporation tax purposes. Usually, a company will be registered at Companies House.

As announced at Autumn Budget 2021, the Government is consulting on allowing companies to change their place of incorporation from one jurisdiction to the UK while maintaining the

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