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+™
  • 31 Oct 2025 07:10

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

Popular Articles

Personal Tax

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more Read more