This tax is levied on the worldwide profits of companies and of unincorporated bodies that are not partnerships, such as members' clubs. The term profits includes all sources of income and capital gains. Additionally, companies which own rental properties may be liable to Annual Tax on Enveloped Dwellings (ATED) for holding in excess of £500,000.
Companies must self-assess their corporation tax and pay any tax due within 9months and one day of their accounting date. The filing process for accounts and tax computations must be in iXBRL format. iXBRL stand for Inline extensible Business Reporting Language.
Corporation tax will increase from 19% to 25% in 2024