What happens on tax when a UK property held in a company is sold?

The gain is broadly the sale proceeds less the acquisition cost, allowable costs of purchase and sale, and any capital improvements, taxed at the company's corporation tax rate of 19% to 25%. Rebasing to April 2019 value is generally available for a non-resident company's UK property in the same way as for individuals.

Where the company also holds other properties or activities, the gain simply forms part of total taxable profit for the accounting period alongside rental income, rather than being calculated or taxed entirely separately.

Extracting the net proceeds as a dividend is taxed under the shareholder's home country rules, since the UK does not withhold tax on dividends, though double taxation relief for the underlying corporation tax paid is not generally available in the way it might be domestically, meaning genuine double taxation is possible in some countries.

Winding up the company and distributing proceeds through a liquidation can sometimes be more tax efficient than a dividend, depending on the shareholder's personal tax position and home country rules, and should be compared before deciding how to extract the proceeds.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.