Calculation of corporate capital gains

Copyright © 2025 LexisNexis
Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance

Calculation of corporate capital gains

Copyright © 2025 LexisNexis
Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance
imgtext

This guidance note sets out the details of the calculation of a corporate chargeable gain, allowable capital losses and the restrictions on their use. It also covers disposals involving foreign currency, the interaction with capital allowances and wasting assets. A number of helpful practical points are also set out at the end of the note. For a general overview of corporate capital gains, including the scope of the charge, see the Corporate capital gains ― overview guidance note.

Calculation of gains

A separate computation will be required for each asset that is disposed of during a company’s accounting period.

For a proforma for calculating gains and losses, see Proforma ― corporate capital gains computation.

To calculate the gain, it will be necessary to determine the following:

  1. •

    date of disposal

  2. •

    disposal proceeds

  3. •

    acquisition costs

  4. •

    allowable expenditure

  5. •

    if the asset was acquired before 1 January 2018, indexation allowance up to 31 December 2017

Each of these elements is explained in detail below.

The other guidance notes in this section provide further

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 09 Dec 2023 00:21

Home/ Tolley Tax Guidance/ Corporation Tax / Preparing the corporation tax return

Popular Articles

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more
Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more
Corporation Tax

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more Read more