Corporation Tax Act 2009 section 41

Effect of company starting or ceasing to be within charge to corporation tax

Section 41 explains how a company's trade is treated for tax purposes when it moves into or out of the corporation tax regime.

• When a company comes within the charge to corporation tax on a trade, it is treated as if it has just started carrying on that trade
• When a company leaves the charge to corporation tax on a trade, it is treated as if it has ceased carrying on that trade
• This commonly applies to non-UK resident companies that begin or stop trading through a permanent establishment in the United Kingdom
• The deemed start or cessation triggers the usual opening and closing year tax rules for computing trade profits