Calculation of corporate capital gains
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 鈥� overview guidance note.
Calculation of gains
A separate computation will be required for each asset that is disposed of during a company鈥檚 accounting period.
For a proforma for calculating gains and losses, see Proforma 鈥� corporate capital gains computation.
To calculate the gain, it will be necessary to determine the following:
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date of disposal
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disposal proceeds
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acquisition costs
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allowable expenditure
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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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