Corporation Tax Act 2009 section 4

Exclusion of charge to capital gains tax

Section 4 ensures that companies within the corporation tax regime are not also charged capital gains tax on the same gains.

• Companies chargeable to corporation tax are excluded from capital gains tax on their chargeable gains
• This prevents the same gain being taxed twice under two different tax charges
• The exclusion also applies where the gain would be within the corporation tax charge but is covered by an exemption
• In practice, all chargeable gains of companies are dealt with under the corporation tax rules rather than the capital gains tax rules that apply to individuals