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Computation of income for UK resident companies

D1.302 What income is taxable for corporation tax purposes?

Profits of a UK resident company (specifically stated as being income and chargeable gains¹ (other than gains falling within the ATED or NRCGT regimes that applied prior to 6 April 2019²; see Division B6.7 and C2.1125–C2.1129A)) are chargeable to corporation tax. Such a charge, in so far as it relates to income rather than chargeable gains, is labelled in the legislation as being 'the charge to corporation tax on income'³.

Profits that accrue for the benefit of a company under a trust are treated for the purposes of the charge to corporation tax as accruing directly to the company⁴. Special rules also apply to company partnerships⁵, profits arising to a company in liquidation⁶ and any post cessation receipts and expenses of a trade (see Division B2.8).

A company is not chargeable to corporation tax on