How to Calculate Your Taxable Profit for UK Corporation Tax (2026)

UK Corporation Tax is calculated on "taxable profit" — not simply accounting profit. Adjustments are made to add back non-deductible expenses (client entertainment, depreciation — replaced by capital allowances) and deduct allowable items not in accounts (R&D enhanced deductions, capital allowances). This article works through a complete example of moving from P&L to CT600 taxable profit, including treatment of salaries, interest, dividends received, and capital allowances.