Calculation of corporate capital gains

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

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:

•
date of disposal
•
disposal proceeds
•
acquisition costs
•
allowable expenditure
•
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

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