Capital Gains Tax for business

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What you pay it on

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) all or part of a business asset.

Business assets you may need to pay tax on include:

  • land and buildings
  • fixtures and fittings
  • plant and machinery, for example a digger
  • shares
  • registered trademarks
  • your business’s reputation

You’ll need to work out your gain to find out whether you need to pay tax.

You pay Capital Gains Tax if you’re a self-employed sole trader or in a business partnership. Other organisations like limited companies pay Corporation Tax on profits from selling their assets.

When you do not pay it

You do not usually need to pay tax on gifts to your husband, wife, civil partner or a charity.