Doing Business in the UK

Corporation tax is tax on the taxable profits of limited companies. Taxable profits for Corporation tax purposes include:

* profits from taxable income such as trading profits and investment profits (except dividend income which is taxed differently)

* capital gains (known as "chargeable gains" for Corporation tax purposes). CGT is 18%.

If you are liable for corptax you need to a) inform HMRC, b) file a tax return on time. There are different rules depending on whether company is active or dormant.