Take your sale proceeds, subtract what you paid and allowable costs, then deduct losses and the £3,000 annual exempt amount. The rest is taxed at 18% within your basic rate band and 24% above it.
Business Asset Disposal Relief
Qualifying gains on selling a business can be taxed at 18% on up to £1 million over your lifetime, instead of the standard rates.
Worked example
See it with real numbers
Selling for £350,000 an asset bought for £250,000, with £10,000 of costs, gives a £90,000 gain. After the £3,000 exemption, with £45,000 of other income, the tax is about £20,564.