Part 2Charge to corporation tax: basic provisions
Chapter 1The charge to corporation tax
Charge to tax on profits
2Charge to corporation tax
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.
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.
3Exclusion of charge to income tax
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
b
the company is not UK resident and the income is within its chargeable profits as defined by section 19.
2
Subsection (1) does not apply to income accruing to a company in a fiduciary or representative capacity.
4Exclusion of charge to capital gains tax
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.