ACCA Applied Skills · Taxation (UK) · The scope of corporation tax
Which of the following is within the charge to corporation tax rather than income tax?
A limited company incorporated in the UK is within the charge to corporation tax. Sole traders, individual partners and individual landlords are taxed on their profits under income tax, not corporation tax.
- AA sole trader carrying on a trade
- BA partnership of two individuals
- CA limited company incorporated in the UKCorrect
- DAn individual receiving rental income
Explanation
Corporation tax is charged on the profits of companies, including UK-incorporated limited companies. Sole traders, partners in a partnership and individuals with rental income are chargeable to income tax instead.
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