Business Disposals and Capital Gains
CGT and corporation-tax gains on business assets, shares, incorporation and relevant reliefs.
How to study the ATT Qualification
Use Finance Act 2025 for the 2026 tax papers, complete the three foundational CBEs early, apply professional ethics throughout and concentrate option practice on the one paper you will enter.
Core concepts
Concept 1
Business disposals require the correct taxpayer, asset, consideration and tax regime.
Exam cue: Classify the disposer as individual, partnership participant or company.
Concept 2
Reliefs such as rollover, holdover, incorporation and business asset disposal relief have distinct conditions.
Exam cue: Calculate the unrelieved gain before applying a relief.
Concept 3
Company gains may include indexation rules within the examinable period and are charged through corporation tax.
Exam cue: State how much gain is exempt, reduced, deferred or transferred.
Risk pitfalls and guardrails
Applying an individual CGT relief to a company.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Double-counting relief when a transaction qualifies under more than one route.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Ignoring claim deadlines or the tax basis carried into replacement property.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Memory anchors
Disposer
The legal and taxable owner determines the gains regime.
Business asset
Confirm qualifying use and ownership throughout the relevant period.
Rollover
Reinvestment may defer a gain into replacement-asset base cost.
Incorporation
Consider assets, consideration, shares and liabilities transferred.
Company gain
Include the chargeable gain in the company's corporation tax computation.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A trader sells business premises for £420,000, with selling costs of £10,000 and base cost of £250,000. What is the gain before reliefs?
A sole trader sells a qualifying business for a £300,000 gain eligible for BADR at 14% in 2025/26. What CGT arises, ignoring exemptions?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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