Taxation in the United Kingdom/Corporation tax/Who pays corporation tax?

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Corporation tax is payable by:

  1. UK resident companies on its worldwide profits[1][2]
  2. Non-UK resident companies that carry on a trade in the United Kingdom through a permanent establishment on its profits attributable to the permanent establishment[3]

"Company" here means any body corporate or unincorporated association but does not include a partnership, a local authority or a local authority association [4]

That doesn't mean that overseas companies that are not trading in the United Kingdom through a permanent establishment are exempt from all tax as they may still be liable to income tax, typically on UK rental income.

Next page: Residents and non-residents

References[edit]

  1. Section 6 of the Income and Corporation Taxes Act 1988
  2. Section 8 of the Income and Corporation Taxes Act 1988
  3. Section 11 of the Income and Corporation Taxes Act 1988
  4. Section 832 of the Income and Corporation Taxes Act 1988