1. Overview

Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.

Company assets

Assets are things your company owns, eg:

  • land and property
  • equipment and machinery
  • shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

Work out and report your gain

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

Report your gains to HM Revenue and Customs (HMRC) when you file your Company Tax Return. How much tax you pay depends on any allowances and reliefs you claim.

There are different rules for intangible assets, eg intellectual property and business reputation (‘goodwill’).

When you pay Capital Gains Tax instead

You pay Capital Gains Tax instead of Corporation Tax if: