To calculate how much Capital Gains Tax you need to pay, work out how much profit you will make from the sale. This is the difference between how much you paid for the business or business assets, and how much they will now be sold for.
If your total taxable gains are below the annual Capital Gains Tax allowance, currently £12,300, you will not pay Capital Gains Tax.
Any costs incurred to improve the business or sell the business can be deducted from the gain. If you report a loss, this will be deducted from the gains made in the same tax year. You can also use unused losses from previous tax years to reduce your gains if you are over the annual Capital Gains allowance for the year.
There are different rules to work out Capital Gains Tax if you dispose of the business for less than it is worth, you inherited the assets and the Inheritance Tax Value is unknown, or if you owned the business before April 1982.