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Definition
Capital gains are the profits a business or individual makes when selling an asset for more than it cost. In a company, chargeable gains are added to profits and taxed as part of corporation tax.
In plain terms
Sell a property, investment or business asset for more than you paid, and the gain is taxable. For a company it goes through corporation tax; for individuals, Capital Gains Tax with its own rates and reliefs applies.
Why it matters for your company
Understanding how gains are taxed matters when a company disposes of premises, equipment or an investment. Reliefs and the timing of a disposal can change the bill significantly, so plan asset sales with the tax in mind alongside your corporation tax position.
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