CG10740 - Persons chargeable: companies

TCGA92/S1 (2)*, TCGA92/S8*  &  TCGA92/S288 (1)

For capital gains purposes a company includes any body corporate or unincorporated association but does not include a partnership.

• Local authorities or local authority associations are not specifically excluded from the definition as they are in ICTA88/S832 (1), but these bodies are exempt from a capital gains charge by virtue of TCGA92/S271 (3).
• TCGA92/S99 provides that the capital gains code should be applied to a unit trust scheme as if it were a company, but only authorised unit trusts are brought within the charge to Corporation Tax by ICTA88/S468. The consequence is that unauthorised unit trusts are within the charge to Capital Gains Tax and not Corporation Tax, see CG41351.
• Chargeable gains accruing to a company in a fiduciary or representative capacity are excluded from the charge to Corporation Tax. The company is chargeable to Capital Gains Tax in respect of such gains, see CG40200P.

*These provisions were re-written for disposals from 6 April 2019 see CG10150.