Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.
Assets are things your company owns, eg:
- land and property
- equipment and machinery
Who pays Corporation Tax
Corporation Tax on chargeable gains is paid by:
- limited companies
- most unincorporated associations, eg clubs and co-operatives
- foreign companies with a UK branch or office
Work out and report your gain
You’ll need to work out your gain to find out whether you need to pay tax.
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:
- you’re a self-employed sole trader or business partner
- your company isn’t resident in the UK, is controlled by 5 people or fewer and has made a gain on UK residential property