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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Resident companies: residence and the charge to Corporation Tax on capital gains

TCGA92/S2, ICTA88/S6, ICTA88/S11

If a company is resident in the UK throughout the whole of a year of assessment any chargeable gains it realises in that year of assessment are not liable to Capital Gains Tax. Instead they are liable to Corporation Tax on capital gains. This is because ICTA88/S6 (1) says that the profits of a company are charged to Corporation Tax and Section 6(4) defines profits for these purposes to include chargeable gains. Section 6(3) then says that any gains charged to Corporation Tax are not to be charged to Capital Gains Tax.

Acting in fiduciary capacity

The only time it is appropriate to make an assessment to Capital Gains Tax on a company is when

  • the company acts in a fiduciary capacity in respect of a person who is chargeable to Capital Gains Tax rather than Corporation Tax
  • it becomes necessary to assess the company in that fiduciary capacity.