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.

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Does TinyTax Support Chargeable Gains?

It depends on your company type:

Company type	Box 210 (Chargeable gains)	How to report
Mixed Income (Advanced)	Yes — dedicated field	Enter the gain in the Chargeable gains field
Trading Company	No dedicated field	Use the Other adjustments workaround (see below)
Property Company	No dedicated field	Use the Other adjustments workaround (see below)

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Using the Mixed Income (Advanced) Type

If you select Mixed Income (Advanced), you will 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.

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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. Scroll to the Tax computation section, below the balance sheet
2. Open the Specialist adjustments chevron — click Show ▾ next to that heading
3. Find the Other adjustments row
4. Enter the chargeable gain as a positive number

The positive adjustment increases your taxable profit, which is correct — the gain is taxable.

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What About Capital Losses?

If you sold an asset at a loss, it is 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 in the Chargeable gains field
• If you have a net capital loss (losses exceed gains), enter 0 — the loss carries forward to offset future gains
• TinyTax does not have a dedicated Box 215 (Allowable losses) field — you enter the net figure (gains minus losses) directly in the Chargeable gains field (Box 210)

Capital losses brought forward from prior years (Box 234)

TinyTax does not currently have a dedicated field for capital losses carried forward from previous years. If you have unrelieved capital losses from prior periods, deduct them from the current year gross gain before entering the figure in the Chargeable gains field.

CT600 Box 825 — Capital losses arising in the period

Box 825 on the CT600 records capital losses arising in the current period that are to be carried forward to offset future gains (where those losses exceed the current period's chargeable gains). TinyTax does not currently have a dedicated Box 825 field. If your company has capital losses that exceed current-period gains, deduct them within Box 210 (entering 0 if there is no net gain) and record the carried-forward loss amount separately outside TinyTax for use in a future period.

For companies with significant capital loss positions — including closed investment holding companies (CIHCs) with regular capital transactions — specialist CT600 software or an accountant is recommended.

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Indexed Gains (Indexation Allowance for Pre-December 2017 Assets)

For assets your company held before December 2017, HMRC allows an indexation allowance — an inflation adjustment that reduces the taxable gain. Indexation allowance was frozen at December 2017 levels for disposals after that date.

TinyTax does not have a dedicated field for indexation allowance. You should calculate your gain after indexation allowance first (using HMRC's indexation factors), then enter the resulting taxable gain in the Chargeable gains field (Box 210). The accounts and the CT600 will both use this indexed figure.

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Substantial Shareholdings Exemption (SSE)

If a disposal is covered by the Substantial Shareholdings Exemption, the gain is exempt from corporation tax and should not be entered in TinyTax at all.

Do not include an SSE-exempt disposal in the Chargeable gains field or the Other adjustments field. There is no dedicated SSE box on the CT600 — the exemption works by excluding the gain entirely from your tax computation.

When SSE typically applies: your company must have held at least 10% of the ordinary shares in a qualifying trading company (or the holding company of a trading group) continuously for at least 12 months within the 24-month period ending on the date of disposal. The conditions are specific — if you are unsure whether your disposal qualifies, speak to an accountant before excluding the gain.

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Disposal Profit in Your Accounts but Exempt from Tax

If the sale of a business, assets, or shares generated a profit that appears in your accounting P&L but is not taxable (for example, because it falls outside the scope of corporation tax, or because an exemption applies), you need to:

1. Enter it in the P&L where it belongs in your accounts
2. Strip it out of the tax computation using a negative Other adjustment

This keeps your accounts accurate while ensuring you do not pay tax on the non-taxable amount.

Steps for Trading and Property companies:

1. In the Profit & Loss section, enter the disposal profit in Other income
2. In the Tax computation section, click Show ▾ next to Specialist adjustments (or Show all at the top)
3. Find Other adjustments and enter the disposal profit as a negative number — for example, if the non-taxable profit is £50,000, enter −50,000

The negative adjustment reduces your taxable profit by that amount, so the gain is excluded from your corporation tax calculation while still appearing correctly in your accounts.

Note on SSE (Substantial Shareholdings Exemption): If the gain is SSE-exempt (selling shares in a qualifying trading company), the exempt gain typically does not appear as income in the selling company's own P&L — it is a capital receipt. In that case, you do not need to enter anything in the P&L or make any adjustment. See the SSE section above.

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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 (Box 825 not supported)
• Investors relief or Business Asset Disposal Relief (BADR) claims
• Indexation allowance (for assets held before December 2017) where you need to show the nominal and indexed gain separately
• Complex ownership structures (transfers between connected parties)

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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. If the Substantial Shareholdings Exemption applies (see above), the gain is exempt and you enter nothing.

Q: My disposal is covered by SSE — what do I enter in TinyTax? A: Nothing. An SSE-exempt disposal does not appear on your CT600. Leave the Chargeable gains field at zero and make no Other adjustments entry for the disposal.

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

Q: Do I need to report the gain if it is small? A: Yes. Companies do not have a capital gains allowance — all gains are taxable regardless of size. (SSE is an exemption from tax, not an exemption from reporting obligations — if SSE applies, the gain is simply outside the scope of CT on chargeable gains entirely.)

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.

Q: I have assets acquired before December 2017 — how does indexation allowance work? A: Calculate your gain after applying the relevant HMRC indexation factor, then enter that reduced (indexed) figure in Box 210. TinyTax does not calculate indexation for you. If you need to report nominal and indexed gains separately, use specialist software.

Q: Can I report capital losses in Box 825? A: TinyTax does not currently have a dedicated Box 825 field. Net any current-period capital losses against your gains before entering Box 210. Losses in excess of current gains carry forward — note the amount outside TinyTax for use in a future period.

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Still Have Questions?

If you are unsure how to report a disposal, get in touch and we will advise.

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Last updated: July 2026