Last updated: 14 October 2026
How are capital gains taxed in a limited company?
A limited company does not pay capital gains tax. Its gains on selling property, shares or other assets are added to its profits and charged to corporation tax. For 2026/27 the main rate is 25%, and 19% applies where total profits are £50,000 or less, with marginal relief in between. Companies don’t get the £3,000 annual exempt amount that individuals have.
How the gain is calculated
- Start with the sale price, less selling costs such as agent and legal fees
2. Deduct the original cost, plus purchase costs and capital improvements
3. Deduct indexation allowance for inflation, but only up to December 2017
4. The result is the chargeable gain, which is added to the company’s taxable profits
Example
A company bought a buy-to-let flat in 2012 for £200,000 and sells it in 2026 for £330,000 after costs. Indexation to December 2017 is, say, £40,000.
- Gain before indexation: £130,000
- Less indexation: £40,000
- Chargeable gain: £90,000
If the company’s other profits are £100,000, total profits are £190,000, so marginal relief applies. An individual landlord making the same sale would pay CGT at 24% after the £3,000 exemption, with no indexation.
Company vs individual rates in 2026/27
| Owner | Rate on the gain |
| Company (profits up to £50,000) | 19% |
| Company (profits £50,000 to £250,000) | Marginal relief, about 26.5% on profits in this band |
| Company (profits over £250,000) | 25% |
| Individual, basic rate | 18% |
| Individual, higher rate | 24% |
Reliefs available to companies
- Substantial shareholding exemption: gains on selling 10% or more of a trading company’s shares, held for 12 months, can be exempt
- Rollover relief: reinvesting the proceeds from a business asset in a new qualifying asset can defer the gain
- Capital losses: these can be set against current or future gains, but not against trading profits
Getting the money out
Once the company has paid corporation tax, taking the profit out as dividends means more tax: 10.75%, 35.75% or 39.35% in 2026/27. If you are winding up the company, a members’ voluntary liquidation can mean the distribution is taxed as a capital gain. Business Asset Disposal Relief at 18% may apply to trading companies.
Losses and timing
A company’s year-end is important. Selling just after the year-end delays the tax bill by 12 months. Losses from other assets can be set off in the same accounting period.
Planning before a company sells an asset
Before a company sells a property or a large asset, check the timing against its accounting year-end and its other profits for the year. A gain that pushes profits above £50,000 may be taxed partly at the marginal relief rate. Consider whether any capital losses are available to offset it, and whether the proceeds will be reinvested in qualifying business assets for rollover relief. Plan how the cash will be used, because taking it out personally adds a second layer of tax.
Frequently asked questions
Does a company get the CGT annual exempt amount?
No. The £3,000 exemption is for individuals and some trusts only.
Is indexation still available?
Only up to December 2017. Any inflation after that is not relieved.
When is corporation tax on a gain due?
For most companies, 9 months and 1 day after the end of the accounting period.
Does stamp duty apply to the buyer?
Yes. The buyer pays SDLT. The selling company doesn’t.
See our corporation tax rates guide.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with company disposals and corporation tax. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
