Inactive companies and Corporation Tax
18 Oct, 2017
There are a number of scenarios where HMRC would consider a company or organisation to be inactive for Corporation Tax (CT) purposes. This is a different categorisation to a 'dormant' company and usually happens when a company has not commenced trading.
A company, whilst not yet active for CT purposes, can still carry out activities (known as ‘pre-trading activities’) or incur costs (known as ‘pre-trading expenditure’).
HMRC’s guidance states that activities or expenditure that are not considered trading by HMRC for CT purposes include: