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Calculation

See 'tax calculation'.

Capital Allowances

Enable you to deduct (write off) the cost of your company or organisation's capital assets - such as machinery, computers, equipment or vehicles - against your taxable profits for Corporation Tax. Instead of deducting the full cost of the item as an expense from your taxable profits in the year you bought it, you deduct a portion of that cost over a period of years. Compare with 'balancing charge'.

Capital Gains Tax

See 'chargeable gain'.

Carry on Business

A company or organisation that is active.

Charge to Tax, the

Companies and organisations that are subject to Corporation Tax deadlines and requirements are known to HMRC for Corporation Tax purposes as being within the charge to Corporation Tax, chargeable to tax or in the charge to tax. HMRC also refers to these companies and organisations as active or trading or engaging in business activity - also known as being liable for Corporation Tax.

Chargeable Gain

If your company or organisation is liable for Corporation Tax, you do not pay Capital Gains Tax separately on your capital gains (in contrast to individuals, self-employed, sole traders or partners in partnerships). Instead, you pay tax on your chargeable gains as part of your Corporation Tax profits.

Chargeable to Tax

See 'charge to tax, the'.

Charitable Purposes

Carrying out the primary purpose of the charity and/or directly serving the beneficiaries of the charity.

Claim

An amount that reduces your taxable profit or tax payable; you generally make a claim as part of your Company Tax Return form.

See 'deduction' and 'relief, tax'.

Close Company

A company that is controlled directly or indirectly by five or fewer participators or any number of participators if they are all directors.
Close investment-holding company

A company that does not exist wholly or mainly to produce goods or offer services itself, but instead acts as a holding company by owning shares of other companies.

Closure Notice

The notice HMRC sends you to complete an enquiry into the Corporation Tax affairs of your company or organisation.

Club

An unincorporated members' club such as a sports or social club that may be liable for Corporation Tax.

Sometimes HMRC uses 'clubs' to also refer to societies, voluntary associations and other unincorporated bodies.

See 'Community Amateur Sports Club ' and 'unincorporated organisation'.

Community Amateur Sports Club (CASC)

A sports club that's registered with HMRC. Some Community Amateur Sports Club activities are 'exempt' from Corporation Tax.

Companies House

The government agency that registers limited companies and receives accounts and other company information delivered under the Companies Acts and related legislation.

Company

A limited company that is registered in the UK or trades in the UK is liable for Corporation Tax.

HMRC also uses company to refer to members' clubs, associations, societies or other unincorporated bodes that are subject to Corporation Tax deadlines and requirements.

Company Tax Return

You account for your company or organisation's Corporation Tax by delivering a Company Tax Return.

A Company Tax Return includes a Company Tax Return form CT600, (or CT600 (Short) if appropriate) and any relevant supplementary pages (CT600A-CT600J), accounts, computations and other supporting documentation as appropriate.

Company Tax Return Form

The form you submit as part of your Company Tax Return. There are two paper Company Tax Return forms - the CT600 and the CT600 (Short) - and an online form.

Computation

The maths which show how entries on your Company Tax Return form have been calculated from the figures in your company accounts - you attach these computations to your return if, for example, you're claiming marginal rate relief you need to attach a computation showing how you calculated those figures. Compare 'tax calculation'.

Corporation Tax

A tax on the taxable profits of limited companies and some organisations including charities, clubs, societies, associations, cooperatives and other unincorporated bodies.

Corporation Tax Self Assessment

A term used to indicate that it's up to you (rather than HMRC) to work out how much Corporation Tax your company or organisation needs to pay for each accounting period.

You self assess your own Corporation Tax by filing a Company Tax Return.

Credit, Tax

Tax credits reduce the amount of Corporation Tax you pay by deducting an amount (the credit) directly from the amount of Corporation Tax you would have paid. If you don't have any Corporation Tax to pay, sometimes you can get a cash repayment.

CT603

See 'Notice to deliver a Company Tax Return'.