{"id":177614,"date":"2022-10-25T12:26:05","date_gmt":"2022-10-25T11:26:05","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=177614"},"modified":"2025-07-02T00:38:39","modified_gmt":"2025-07-01T23:38:39","slug":"capital-gains-tax-assessed-companies","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/capital-gains-tax-assessed-companies\/","title":{"rendered":"How is Capital Gains Tax Assessed for Companies in England?"},"content":{"rendered":"\n

If you have ever had to <\/span>pay capital gains tax yourself<\/span><\/a>, you might wonder how HMRC assesses it for a business, particularly a company. You may be surprised that companies do not pay capital gains tax, though certain other businesses do. That said, companies still have to pay taxes on certain transactions involving capital assets. This article will explain the mechanics behind how HMRC assesses a company\u2019s tax liability for capital gains.\u00a0<\/span><\/p>\n\n\n\n

Capital Gains Tax vs Chargeable Gains <\/span><\/h2>\n\n\n\n

Capital gains tax (CGT) is a kind of chargeable gains. That is, CGT is a set of tax rules that determines how individuals and unincorporated business entities pay tax on any profit arising from the sale of capital assets. In addition to CGT, HMRC has a separate system for calculating how much money a company has to pay when they make a gain on the sale of a capital asset. <\/span><\/p>\n\n\n\n

Put another way, there are two separate tax systems to assess a taxpayer\u2019s liability for any surplus gains they make when they dispose of a capital asset. For individuals, HMRC uses the CGT system. For companies, any chargeable gain is factored into the company\u2019s total taxable profits (TTP), which is then <\/span>taxed at the corporate tax rate<\/span><\/a>. <\/span><\/p>\n\n\n\n

Total Taxable Profits <\/span><\/h2>\n\n\n\n

Companies make money in one of two ways:<\/span><\/p>\n\n\n\n