A fundamental principle of UK income tax and corporation tax whereby expenditures that have a dual purpose are not deductible in computing profits subject to tax unless they can be dissected to identify wholly business-related expenses.
Profits chargeable to corporation tax (PCTCT) represent the total taxable profits of a corporation on which corporation tax is calculated. This includes profits from trading, property, investment income, overseas income, and chargeable gains, after deducting any allowable charges.
