Does my charity need to file a Corporation Tax return and pay Corporation Tax?

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Charities must file a Company Tax Return if they receive a ‘notice to deliver a Company Tax Return’ from HMRC.

Additionally, because the UK has a regime of ‘self assessment’, a charity must file a return if they have a tax liability because of receiving income which does not fall within the charitable exemptions and so they have a tax liability.

You can find out more about how to calculate the corporation tax liability of your charity here, and how to file the return here.

Does my charity need to pay corporation tax?

Unfortunately, there is not a blanket exemption form corporation tax for charities. However, most types of income and gain, including income from charitable activities, are exempt from corporation tax where the income and gains are applied for charitable purposes.

The most common type of income which could potentially give rise to a corporation tax charge is non-charitable (known as non-primary purpose) trading. Miscellaneous income including some income from property transactions could also give rise to a corporation tax charge.

You can find out more about corporation tax reliefs here and trading income here.

CTG does not provide tax advice and so the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.