Corporation tax (UK)
Corporation tax is charged on taxable profits for an accounting period, subject to the relevant rules. The computation can include trading and property profits, investment income and chargeable gains, less allowable deductions and reliefs where applicable. Residence, accounting period, rates and group treatment matter. Company tax on chargeable gains is distinct from the individual capital gains tax computation.
Worked example
A company calculates its taxable profits for an accounting period, applies available reliefs and uses the appropriate period-specific corporation tax rules.
Common mistake
Applying an individual capital gains tax rate to a company’s chargeable gain or assuming every accounting expense is deductible.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |