United Kingdom · Reviewed 2026-08-20
UK Corporation Tax
UK companies generally pay Corporation Tax on taxable profits. Rates, reliefs, and capital allowances are set in legislation and often updated at Budget time.
Who pays Corporation Tax
Limited companies resident in the UK typically account for Corporation Tax on profits after allowable deductions. Different rules can apply to certain foreign companies with UK permanent establishments. Sole traders are usually in Income Tax, not Corporation Tax.
Profits, dividends, and investor view
After Corporation Tax, companies may distribute dividends. Shareholders then study dividend tax outside ISAs. Headline Corporation Tax changes can affect company earnings, while your personal CGT and dividend tax remain separate layers.
Compliance rhythm
Companies file Corporation Tax returns and typically pay on different timelines from individual Self Assessment. Accounting periods and payment dates deserve their own calendar - do not assume personal tax deadlines apply.
Common mistakes
- Assuming drawing a director’s dividend avoids all personal tax questions.
- Using a Budget headline rate without checking which profits and size bands it applies to.
Sources & further reading
Corporate / company tax FAQ
Short answers for discovery.
What is uk corporation tax?
UK companies generally pay Corporation Tax on taxable profits. Rates, reliefs, and capital allowances are set in legislation and often updated at Budget time.
What is a common mistake on United Kingdom uk corporation tax?
Assuming drawing a director’s dividend avoids all personal tax questions.
What is a common mistake on United Kingdom uk corporation tax?
Using a Budget headline rate without checking which profits and size bands it applies to.
Investor tax guides
Featured explainers that pair with the United Kingdom desk and this topic - then open All guides for the full library.
- Tax Loss Harvesting Explained for Stock InvestorsTax loss harvesting means selling investments at a loss in a taxable account to offset capital gains (and sometimes a slice of ordinary income), then staying invested without triggering wash-sale or anti-avoidance rules. It helps most when you already have gains to offset - not as a reason to wreck a long-term plan.
- Capital Gains Tax on Stocks: Investor OverviewCapital gains tax (CGT) generally applies when you sell shares or ETFs for more than your cost basis. Rates, allowances, and holding-period rules vary by country - start here for the shared math, then open a StockWatch country CGT desk or country guide before you file.
- Crypto Tax Basics for InvestorsMost tax systems treat crypto like property for investors: selling, swapping, or spending can realize a gain or loss, and staking or airdrop rewards may look like income. Rules differ sharply by country - use this guide to frame the events, then open a capital-gains desk for your residency.
- Tax-Advantaged Accounts for Investors (IRA, 401k, ISA & More)Tax-advantaged accounts change when and how investment income is taxed: deferral inside pensions, tax-free growth in some wrappers, or employer plans with contribution limits. Names differ (401(k), IRA, ISA, TFSA, SIPP) - the design pattern is similar, and taxable brokerages still matter for overflow capital.
- Tax Loss Harvesting in the United KingdomIn the UK, investors often talk about crystallising losses to offset capital gains, while watching the annual exempt amount and anti-avoidance rules around repurchase. ISAs and SIPPs change the picture because gains inside wrappers are usually sheltered. This is education, not personal tax advice.
- Capital Gains Tax on Shares in the United KingdomUK capital gains tax on shares is about chargeable disposals outside sheltered wrappers, after costs and the annual exempt amount. ISAs and many pensions change the story. This guide is educational orientation for Self Assessment research - not a lodgement checklist.
- ISA vs Taxable Account (UK Investor Guide)A Stocks & Shares ISA can shelter dividends and gains inside the wrapper, subject to annual subscription limits. A general investment account is typically exposed to dividend tax and CGT rules. Use this to compare structures, then open UK tax desks for detail.