Corporation Tax Act 2009 (c. 4)

Part 2 U.K. Charge to corporation tax: basic provisions

Chapter 1 U.K. The charge to corporation tax

Charge to tax on profits U.K.

2 Charge to corporation tax U.K.

(1) Corporation tax is charged on profits of companies for any financial year for which an Act so provides.

(2) In this Part “profits” means income and chargeable gains, except in so far as the context otherwise requires.

F1 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In this Act “the charge to corporation tax on income” means the charge under subsection (1) so far as relating to income.

(4) The charge to corporation tax on income has effect in accordance with the provisions of the Corporation Tax Acts that deal with its application.

Textual Amendments

F1 S. 2(2A) omitted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 1 para. 109

3 Exclusion of charge to income tax U.K.

(1) The provisions of the Income Tax Acts relating to the charge to income tax do not apply to income of a company if—

(a) the company is UK resident, or

[F2 (b) the company is not UK resident [F3 and it is chargeable to corporation tax in respect of the income, or would be so chargeable but for an exemption].]

(2) Subsection (1) does not apply to income accruing to a company in a fiduciary or representative capacity.

Textual Amendments

F2 S. 3(1)(b) substituted (with effect in accordance with s. 81 of the amending Act) by Finance Act 2016 (c. 24), s. 76(6) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))

F3 Words in s. 3(1)(b) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 11, 35 (with Sch. 5 para. 36)

Modifications etc. (not altering text)

C1 S. 3(1) excluded (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 5(6)

4 Exclusion of charge to capital gains tax U.K.

Capital gains tax is not charged on gains accruing to a company in respect of which the company is chargeable to corporation tax, or would be so chargeable but for an exemption.