Basic principles

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Who pays corporation tax?

Corporation tax is payable by 'companies', which includes any body corporate and unincorporated associations.

A company that is tax resident in the UK is generally subject to UK corporation tax on its worldwide profits. A company that is not tax resident in the UK may still be subject to UK corporation tax in certain circumstances, including:

  1. •

    (for disposals of UK land on or after 5 July 2016) in respect of profits from a trade of dealing in or developing UK land, (for more information, see Practice Note: Profits from trading in and developing UK land (transactions in UK land))

  2. •

    if it carries on a trade (other than a trade of dealing in or developing UK land) in the UK through a permanent establishment (PE), in which case it is subject to UK corporation tax in respect of the profits attributable to its UK PE (for more information, see Practice Notes: What is a UK permanent establishment? and How is a UK permanent establishment taxed?)

  3. •

    if it disposes (directly or indirectly—this includes a sale of shares in a property

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