Corporation Tax

All UK resident companies are liable to corporation tax on their profits.

A company is UK resident if it is incorporated in the UK. If a non-UK resident company carries on a trade in the UK through a permanent establishment, it will be liable to corporation tax on the profits directly attributable to the permanent establishment.

A company or an organization must inform HMRC within three months in writing when it comes within the charge to corporation tax.

A complete company tax return should include:

• a completed form CT600;
• any appropriate supplementary pages;
• a set of accounts, appropriate to the type of company; and
• a tax computation showing how the figures on the CT600 have been derived from the accounts.

The 21% small companies rate of corporation tax is applied to profits chargeable to corporation tax if company profits for the year to 31.03.09 are £300,000 or less. Profits above £300,000 are chargeable at the full rate of coporation tax of 28% subject to the company's claim for marginal relief.