½Û×ÓÊÓƵ

Maximising business asset disposal relief

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Maximising business asset disposal relief

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

This guidance note considers some practical and planning points relating to business asset disposal relief (BADR). For guidance on the calculation of and qualifying conditions for BADR, see the Conditions for business assets disposal relief guidance note.

The rate of BADR is 14% for disposals made on or after 6 April 2025 (10% prior to this date) and this will increase to 18% for disposals made on or after 6 April 2026.  Therefore from April 2026, the BADR rate will match the basic rate of CGT.

Spouses’ shares

Spouses and civil partners (hereafter ‘spouse’) are often involved in the running and ownership of owner-managed businesses. This offers a number of benefits with regards to tax planning, in particular making the use of two individuals’ entitlement to allowances and entitlement to reliefs which have a limit for each individual. BADR is such a relief, with each individual subject to a lifetime limit of £1m of capital gains. Where spouses jointly own a business, this enables them to utilise the remainder of both of their lifetime limits

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Winding up a trust ― legal, administrative and compliance issues

Winding up a trust ― legal, administrative and compliance issuesOverviewWhen winding up a trust, there are legal formalities and compliance issues that need to be dealt with, as well as IHT and CGT consequences that flow from the termination. This guidance note considers when and how a trust comes

14 Jul 2020 14:01 | Produced by Tolley Read more Read more

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more Read more