Flow chart - business asset disposal relief

Business asset disposal relief (BADR) reduces the rate of capital gains tax for gains made from the sale or transfer of a business, assets of that business and sometimes part of a business. The rules are widely drawn, but before these are considered some basic conditions must be met.

Flow chart

The Flow Chart - Business Asset Disposal Relief will help you decide if you are entitled to claim.

Definitions for the flow chart:

• Qualifying trade - broadly means any business which is not dealing in investing e.g. property development, buying and selling investments or licensing arrangements
• Officer of a company - a director or company secretary
• Qualifying shares - broadly those which give the owner a share of a company’s ordinary share capital

HMRC provides a comprehensive helpsheet at https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet

Documents

Where you establish that you are entitled to BADR our Business Asset Disposal Relief Checklist and Rent or Business Asset Disposal Relief Checklist may help you with quantifying and making your claim.