Disposal of premises by companies

Produced by Tolley in association with of Crane Dale Tax, part of AMS Group

Corporation Tax

Guidance

This guidance note explains the various aspects which need to be considered in relation to a company’s disposal of premises and the calculation of the chargeable gains position.

The calculation of the tax position for a disposal of land and / or buildings will generally be computed in the same way as any other asset; there is not a specific regime. This note seeks to draw together the various issues that will need to be considered, as this is a common transaction carried out by companies.

For a general overview of the capital gains position of a company see the Corporate capital gains - overview guidance note and for details of the calculations required please refer to the Calculation of corporate capital gains guidance note.

Disposal proceeds

Where the disposal takes place between connected parties, or the asset is disposed of otherwise than by a bargain at arm’s length, the actual consideration is ignored and the market value of the asset is taken to be the proceeds

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Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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