How does Corporation Tax affect UK companies in property activities?
Corporation tax is the tax that is charged on the profits of limited companies, including those that are engaged in any property-related activity. Unlike individual landlords, companies are subject to corporation tax on their income and gains.
Usually, individual landlords do not have to worry about corporation tax, however if the property has been purchased under the name of a limited company, they will be liable to corporation tax instead of income tax and capital gains tax.
What are the current Corporation Tax rates for UK companies?
The corporation tax for the current year has been listed below:
| Rate Band | Corporation Tax Rate (2023/24) |
| Profits between £50,000 to £250,000 | 26.5% |
| Small Profits Rate-Profits Less than £50,000 | 19% |
| Main Rate- Profits above £250,000 | 25% |
How to File Corporation Tax returns in the UK?
The Corporation Tax return should be filed within 12 months of the end of the accounting period. Along with the corporation tax return, the company must submit a set of accounts, any necessary detailed analysis and the computations necessary to show that the return is complete and correct.
The deadline for filing your corporation tax return is due nine months and one day after the end of the chargeable accounting period. For large companies, the corporation tax needs to be paid in an instalment basis.
Don’t forget to check out our complete guide on Corporation Tax for a more in-depth analysis.
