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Calculation of corporate capital gains

Produced by a
Corporation Tax
Guidance

Calculation of corporate capital gains

Produced by a
Corporation Tax
Guidance
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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

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