Do limited companies pay

Capital gains tax?

The simple answer to this is no! The companies do not pay capital gains tax on the gains they make instead they pay corporation tax .

Capital gains tax is more flexible than the corporation tax because there are reliefs available to self -employed and the sole proprietor, whereas if you are working through a limited company you will have to pay corporation tax at the flat rate. For the tax year 2022/ 2023 the corporation tax rate is 19% and you have to register for taxes as soon as you start the business. The corporation tax is set to increase from 19% to 25% in the year 2023.

The individuals doing a business as a sole proprietor or as partners get a tax free allowance of £12 300 when they sell a business asset ( which includes a residential property) any gains made over this amount will attract CGT. The rate at which CGT is paid depends on the income tax rate band you fall into because of the level of income you have and the type of asset that is being sold. It is 10% or 20% depending on the income and if you are selling a residential property it is 18% or 28% depending on which income tax rate band you fall into.

If you are in a property business and you are selling your buy to let property will you pay corporation tax or capital gains tax ?

Well again it depends on what business structure you have.

If you are self employed or in a partnership you will be paying capital gains tax on the sale of the property which is not your main home. However if you are running your property businesses as a limited company you will have to pay corporation tax on the gains. It is considered profit and will be taxed in the same way as the other profits of the company for example the trading profits or other investments.

Are the profits calculated differently for capital gains tax and corporation tax?

No, the chargeable gains will be calculated in the same way for both capital gains tax and corporation tax.

How do we calculate chargeable gains?

The chargeable gain is the difference between what you paid for an asset and what you sold the asset for .You can deduct other costs as well for example costs of improvement which will include any extensions which you did in your property. You can also deduct estate agent and any solicitor's fees.

Capital Gains Tax in high value residential property.

If you pay annual tax on enveloped dwellings you must pay capital gains tax when you sell the property upto 5th April 2019 or corporation tax upto 6 April 2019.

You will need to complete AETD related capital gains tax return if your company is a dwelling, is in the UK and was valued at more than £500 000.

If you want to save taxes you need to do planning ahead of the tax year you should consult a tax expert to be more aware of your taxes . We at Taxaccolega have expert accountants who can help you with your tax planning

If you are running a limited company or you are starting your new business and you want advice on taxes you can consult Taxaccolega and our accountants will be happy to help you. You can call us at 020 8127 0728 or send us a message here

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ID Verification Form For Companies House

From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House.

Companies House will issue a personal code to PSCs.
Taxaccolega (ACSP) can help collect data and assist.
Please answer the questions and upload documents.

Personal Details

Fornames * Last Name * Date of Birth * Nationality * Place of Birth *

Contact Details

Current Address * Date you moved in at current address? * Previous Address(es) in last 12 months (if Any) Email * Phone *

Role in the Company *

I am a Director I am a Person with Significant Control (PSC)

Identity Documents

ID Document * Address Document *
Are you an Overseas Director and PSC? *

Additional (Overseas)

Overseas Supporting Docs *

Privacy & Consent

You are declaring that all documents and information provided by you are true and correct, you are consenting to use and store your personal data and consenting for Taxaccolega Chartered Accountants to act as Authorised Corporate Service Provider (ACSP) on your behalf.

I confirm that I have read and agree to the above Terms & Conditions and consent to the processing of my data by Taxaccolega Chartered Accountants for the purposes of identity verification with Companies House.

Terms & Conditions – Identity Verification Process

By submitting, you authorise Taxaccolega to process your data for ID verification with Companies House.

I agree to Terms*

1. Purpose of this Agreement
1.1 These Terms & Conditions apply to the collection and processing of personal data and identity documents required under the Economic Crime and Corporate Transparency Act 2023 and Companies House identity verification rules effective from 18 November 2025.
1.2 By submitting your details through our online form, you authorise Taxaccolega Chartered Accountants (as an Authorised Corporate Service Provider – ACSP) to process your information for the sole purpose of fulfilling the identity verification obligations set by Companies House.

2. Client Responsibilities
2.1 You confirm that all information and documents you provide are true, accurate, complete, and current.
2.2 You accept full responsibility for any false, misleading, or incomplete information supplied, and acknowledge that this may lead to penalties or rejection of your verification by Companies House.
2.3 You must notify us promptly of any change in your details (such as name, address, or role in the company) which may affect the verification process.

3. Our Role & Limitation
3.1 We act solely as an intermediary in submitting your information to Companies House.
3.2 We do not guarantee the acceptance, speed, or outcome of any identity verification by Companies House. The final decision rests solely with Companies House.
3.3 We shall not be liable for any loss, delay, penalty, or consequence arising from:
* (a) inaccurate or incomplete information provided by you,
* (b) delays or failures within Companies House systems,
* (c) rejection or failure of verification by Companies House, or
* (d) events outside our reasonable control.
3.4 Nothing in these Terms excludes liability for death, personal injury, fraud, or any liability which cannot be excluded under law..

4. Data Protection
4.1 We will process your personal data in accordance with the UK GDPR and the Data Protection Act 2018.
4.2 Your data will be used solely for the purpose of identity verification and related compliance requirements.
4.3 We will retain your information only as long as required by law or regulatory obligations.
4.4 We will not disclose your information to third parties other than Companies House or other parties legally entitled to it.

5. Client Consent
By ticking the consent box and submitting your details, you confirm that:
• You have read, understood, and agreed to these Terms & Conditions.
• You consent to Taxaccolega Chartered Accountants acting as your Authorised Corporate Service Provider (ACSP) for identity verification purposes.
• You consent to the processing, storage, and transfer of your personal data and documents in accordance with Section 4 above..

6. Governing Law & Jurisdiction
These Terms & Conditions are governed by and construed in accordance with the laws of England and Wales, and any disputes shall be subject to the exclusive jurisdiction of the courts of England and Wales.

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Do Limited Companies Pay Capital Gains Tax in the UK?