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, such as:
- land and property
- equipment and machinery
Who pays Corporation Tax
Corporation Tax on chargeable gains is paid by:
- limited companies
- most unincorporated associations, for example clubs and co-operatives
- foreign companies with a UK branch or office
You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.
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, for example intellectual property and business reputation (‘goodwill’).