tailieunhanh - Ebook Taxation finance act 2017 (23/E): Part 2

Part 2 book “Taxation finance act 2017” has contents: Introduction to corporation tax, corporate chargeable gains, computation and payment of the corporation tax liability, close companies and investment companies, overseas aspects of taxation, and other contents. | Part 3 CORPORATION TAX Chapter 23 Introduction to corporation tax Introduction The next six chapters of this textbook deal with corporation tax, which is the tax that companies pay on their profits. The purpose of this first chapter is to provide an intro duction to the basic p rinciples of corporation tax. Relevant legislation can now be found mainly in the Corporation Tax Act 2009, the Corporation Tax Act 2010 and the Taxation of Chargeable Gains Act 1992, as amended by subsequent Finance Acts. Scope of corporation tax UK resid ent companies are liab le to corporation tax on their "taxable total profits ", no matter where in the world those profits arise. Companies which are not UK resident are within the charge to UK corporation tax only if they trade in the UK through a permanent establishment or carry on a trade of dealing in UK land (see Chapter 32). Note that: (a) A company's taxable total profits include both its income and its chargeable gains. The term "chargeable gains" is normally used in preference to "capital gains". (b) The main source of income for most companies is likely to be trading income. But a company may also have other sources of income. These could include bank interest, loan interest, property income etc. (c) In general terms, a company's income is computed i n a broadly similar way to that of an individual. The main differences between the assessment of a company's income and an individual's income are explained later in this chapter. The way in which a company's chargeable gains are calculated is considered in Chapter 24. For corporation tax purposes, the word "company" is taken to mean any corporate body or unincorporated association, excluding partnerships, local authorities and local authority associations. As well as limited companies, this definition incl udes clubs and societies, which are liable to corporation tax on their income from .