Capital Gains and Disposals

Has your company sold an asset at a profit? Limited companies pay corporation tax on chargeable gains — not Capital Gains Tax. This guide explains how to handle asset disposals in TinyTax.

Does TinyTax Support Chargeable Gains?

It depends on your company type:

Using the Mixed Income (Advanced) Type

If you select Mixed Income (Advanced), you'll see a Chargeable gains field (Box 210) in both the P&L and the tax computation. Enter the net gain (after deducting allowable costs and any capital losses) directly.

Workaround for Trading and Property Companies

For Trading or Property companies, chargeable gains can be reported using the Other adjustments field.

Step 1: Calculate Your Gain

Work out your chargeable gain:

1. Disposal proceeds (what you sold the asset for)
2. Minus original cost (what you paid for it)
3. Minus allowable costs (legal fees, valuation costs, improvement costs)
4. Equals chargeable gain

Step 2: Enter in TinyTax

1. Click Show all in the Tax Computation section header
2. Find the Other adjustments field
3. Enter the chargeable gain as a positive number

What About Capital Losses?

If you sold an asset at a loss, it's a capital loss. Capital losses can only be offset against capital gains — not against trading profits.

• If you have gains and losses in the same period, net them off and enter the net gain
• If you have a net capital loss, you generally don't enter anything in TinyTax — the loss carries forward to offset future gains
• TinyTax does not have a dedicated capital losses field (Box 825)

When to Use Specialist Software

The Other adjustments workaround is fine for simple, one-off disposals. Use specialist CT600 software or an accountant if your company has:

• Multiple disposals in the same period
• Capital losses to carry forward or offset
• Investors' relief or Business Asset Disposal Relief (BADR) claims
• Indexation allowance (for assets held before December 2017)
• Complex ownership structures (transfers between connected parties)

Common Questions

Q: My company sold shares in another company — where does the gain go? A: If using Mixed Income (Advanced), enter in the Chargeable gains field. For Trading/Property type, use Other adjustments. Note: the Substantial Shareholdings Exemption may apply if your company held 10%+ for 12+ months — consult your accountant.

Q: My company sold a property — is that a chargeable gain or trading income? A: For a property investment company (buy and hold), it's usually a chargeable gain. For a property trading company (buy, develop, sell), it's usually trading income (enter as turnover). The distinction depends on your company's activity — consult your accountant if unsure.

Q: Do I need to report the gain if it's small? A: Yes. Companies don't have a capital gains allowance — all gains are taxable regardless of size.

Q: My company disposed of equipment — is that a chargeable gain? A: If the equipment was covered by capital allowances (AIA), the disposal is handled through the capital allowances system (balancing charges), not chargeable gains. If no capital allowances were claimed, the disposal may produce a chargeable gain or loss.

Still Have Questions?

If you're unsure how to report a disposal, get in touch and we'll advise.

Last updated: February 2026