Capital Gains Tax for business
Tax relief
You may be able to reduce or delay the amount of Capital Gains Tax you have to pay if you’re eligible for tax relief.
| Relief | Description | Eligibility |
|---|---|---|
| Business Asset Disposal Relief | Pay 18% Capital Gains Tax (14% for disposals from 6 April 2025 to 5 April 2026 or 10% for disposals on or before 5 April 2025) on qualifying profits if you sell all or part of your business (instead of the normal rates) | For sole traders, business partners or those with shares in a ‘personal company’ |
| Business Asset Rollover Relief | Delay paying Capital Gains Tax when you sell or dispose of some types of asset if you replace them | Buy the new asset within 3 years of disposing of the old one (or up to one year before). Only use the old and new assets for trading |
| Incorporation Relief | Delay paying Capital Gains Tax when you transfer your business to a company | Transfer all your business and its assets (except cash) in return for shares in the company |
| Gift Hold-Over Relief | Pay no Capital Gains Tax if you give away a business asset - the person you gave it to pays tax when they sell it | You used the business asset for trading as a sole trader or partner |
Tax relief when you sell your home
You normally get Private Residence Relief when you sell or dispose of your main home, meaning you do not pay any Capital Gains Tax.
If you’ve used any part of your home just for business, you have to pay Capital Gains Tax on that part when you sell your home.
You can get help from an accountant or tax adviser.