Corporation Tax Exemption

When it comes to handling the tax obligations of NFP bodies, it is important to consult a firm of skilled accountants like The Accountancy Solution. This is the best way to ensure that you are meeting your tax obligations and claiming exemption as and where necessary to avoid overpaying tax.  

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One of the greatest challenges facing those in the not for profit sector is handling corporation tax exemption. While some organisation are exempt from corporation tax, others in the NFP sector must pay this tax anyway. Knowing which status your organisation holds and its responsibilities are essential to ensuring that it does not fall foul of the law.

Advice For Corporation Tax Exemption

  • Charities are often believed that charities are tax-exempt; however, their tax exemptions series is particular. So long as charities stay within them, there is no tax charged; however, if charities are trading, they may face problems. For example, if premises are let out for weddings, conferences and meetings, this may require tax to be paid.
  • Local amateur sports clubs provide and promote facilities for amateur sports for recreational and social purpose and therefore should not have to pay corporation tax. However, if they trade at all by providing services to non-members, temporary members or visitors, this surplus is liable to tax.
  • Community interest companies – sometimes known as CICs, these asset locked bodies have to ensure any assets or profits are principally used to benefit the community. There are no specific corporation tax exemptions for CICs, and therefore their profits are fully taxable.
  • Mutuals – these are widely misunderstood. Mutual organisations are quite complex to understand as they cannot claim capital allowances or losses on mutual trades, but they are fully taxable for other gains and income.


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Are you just looking for an answer to a general question? We always provide free advice to individuals and self employed persons. You can send us an email, call us or fill in the form. But you should be asking answers to general questions.

Types of Corporation Tax

Its rather types of organisations which need to pay corporation tax. Companies can also be classified as non resident or foreign.

Unincorporated Business

Unincorporated Business are associations registered in companies house. Other types of business will include sole traders and partnerships.

Reliefs And Allowances

Claim corporation tax releif on expenses which are eligible under the law. There are penalties for claiming wrong tax relief.

Tax on Foreign Companies

Corporation Tax on foreign companies will depend on certain conditions. Its not always every foreign company have to pay tax.

Frequently Asked Questions

Most frequent questions and answers

No we do not charge any fee for initial consultation. We will try to give you free guidance if its something you can do easily by yourself. We will only charge you if you appoint us to do some work for you. 

We are giving free advice on general questions and this is one way of paying back to our local community who cannot get through to tax man. But if your question is of specific nature, we will tell you about our fee.

You can certainly ask question about accounting but you should know that we cannot teach you accounting over the phone or online. If you are not familiar with book keeping or accounting, its best to hire an accountant?

If you are only after advice, we will make a decision after hearing question. It may take further investigation and we may have to look into your personal circumstances to answer your question.

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