Business Asset Disposal Relief - Maximising the Tax Savings
If you’re selling, transferring, or winding up your business, don’t let excessive tax costs drain your profits. Business Asset Disposal Relief offers a valuable tax-saving opportunity, ensuring you pay just 14% tax on qualifying gains. However, the rules can be tricky, and navigating them correctly is essential to maximising your savings.
That’s why we’ve created the Tips & Advice Special Report – “Business Asset Disposal Relief: Maximising the Tax Savings.” This easy-to-follow pdf breaks down the complexities of tax relief, making it simple for you to understand. With clear explanations and practical strategies, you'll gain the confidence to claim what you’re entitled to—without the guesswork.
Inside this PDF, you'll discover when and how to claim Business Asset Disposal Relief, along with step-by-step guidance to help you calculate your savings accurately. We also provide expert strategies to maximise your tax benefits, ensuring you make the most of available reliefs. Plus, you'll learn about key deadlines, common pitfalls to avoid, and how this relief interacts with other tax incentives—all in a format that’s easy to digest.
To bring even greater clarity, we’ve included real tax cases that illustrate how the relief works in practice. With this information at your fingertips, you can confidently take advantage of this valuable tax break and keep more of your hard-earned money where it belongs—in your pocket.
| Type of product | |
|---|---|
| Version of support of product | PDF format |
| Identifier (EAN / ISSN / Action Code) | 9781911744306 |
| Name of collection | Tips & Advice Special Reports |
| Availability | In stock |
| Access to exercice | No |
| Publisher | Lefebvre UK |
| Language of the product | EN |
| Publication Date | Apr 14, 2025 |
| Access to Strada Be | No |
| Access to Strada EU | No |
| Access to Strada LU | No |
Table of contents
In this Tips & Advice Special Report you'll read about...
1. How does it work?
1.1. What gains qualify?
1.2. What is a disposal?
1.3. How do I work out a gain?
1.4. What about gains on shares?
1.5. How do I calculate the tax on gains?
1.6. Is there a limit to the amount of gains that can qualify?
1.7. How do I claim BADR?
2. Sole traders and partners
2.1. What do I need to have done to qualify?
2.2. I’ve sold my business. How much of the gain qualifies for BADR?
2.3. Can I own a business for a short time and get the relief?
2.4. What about only selling part of my business?
2.5. What does HMRC say about it?
2.6. Can I sell my business in stages and still qualify?
2.7. How do I calculate the tax on a qualifying transaction?
2.8. What if I sell business assets after I stop trading?
2.9. If I sell assets after selling part of my business, will they qualify for relief?
2.10. What if one of the assets isn’t fully used in my business?
2.11. What if I owned the asset before using it in my trade?
2.12. How does BADR apply to business partners?
2.13. If I sell my share in the partnership will I qualify?
2.14. What if I have owned some of my partnership share for less than two years?
2.15. Does BADR apply if a partnership sells its assets?
2.16. I personally own assets the partnership uses. What’s the BADR position?
2.17. I rented assets to the partnership. Does BADR apply if I sell them?
2.18. What if the assets weren’t always used by the partnership?
2.19. What if only part of a property is used by the partnership?
3. Shares in companies
3.1. How does BADR apply to shareholders?
3.2. I’ve sold shares in a company. Does the gain qualify for BADR?
3.3. What’s the position if my company stops trading?
3.4. What counts as a personal company?
3.5. What are ordinary shares?
3.6. Can the shares be owned indirectly?
3.7. Is there a minimum period for share ownership?
3.8. Can I sell or transfer my shares in stages and qualify for BADR?
3.9. Can shares in all types of company qualify?
3.10. What’s the definition of trading company?
3.11. What are the problems with the definition?
3.12. Is a company trading if it also owns investments?
3.13. How can I ensure the trading requirement is met?
3.14. Are cash investments non-trading assets?
3.15. My company uses only part of a building for its business. Is this a problem?
3.16. Are holding companies trading?
4. Assets used by companies
4.1. My company uses buildings I personally own, does BADR apply?
4.2. What are the BADR conditions for personally owned assets?
4.3. What counts as “withdrawing from participation” in a company?
4.4. Can I sell some of my shares and claim BADR for other assets?
4.5. What if the company has ceased trading?
4.6. What if the property has not always been used by my company?
4.7. What if not all of the asset was used in the company’s business?
4.8. What if my company has not always been my personal company?
4.9. What if my company ceases to be my personal company because of a takeover?
4.10. What’s the position where the company has paid me rent for use of the property?
4.11. Does the period of rental make a difference?
4.12. The rent has changed year on year. How do I deal with this?
4.13. What if I don’t charge rent but the company covers my mortgage repayments?
5. Furnished holiday lettings (until 5 April 2025)
5.1. What were furnished holiday lets?
5.2. What were the conditions to be an FHL?
5.3. What were the occupation conditions?
5.4. What if the occupation conditions were not satisfied?
5.5. I ran an FHL. Do I qualify for relief?
6. Families
6.1. Can I receive BADR on a transfer to my spouse or civil partner?
6.2. Do transfers between spouses have any effect on BADR?
6.3. What’s the position with jointly held assets?
6.4. Can jointly held assets be advantageous for BADR?
7. Interaction with other reliefs and losses
7.1. What’s the position if I make capital losses in the same year as gains?
7.2. I incorporated my business and didn’t pay any tax. Does this affect BADR?
7.3. Can I aggregate periods of ownership to meet the period of ownership condition?
7.4. What if I sell a business asset and buy a replacement?
8. Takeovers, shares and earn-outs
8.1. I sold my company by taking on shares in a new one. How does this affect BADR?
8.2. What are the tax differences and how might they affect me?
8.3. How does receiving QCBs as payment for shares affect BADR?
8.4. Why elect to pay the tax sooner?
8.5. Other than paying tax earlier is there a downside to making an election?
8.6. What if I am paid in instalments for my shares?
8.7. What if I overestimate the value of the earn-out?
8.8. What if the earn-out payment is made as shares?
9. Appendix: Case studies
9.1. Case study 1: Sole traders, spouses and assets
9.2. Case study 2: Gains, losses, relief and the annual exemption
9.3. Case study 3: Incorporation and property
9.4. Case study 4: Assets, companies and part use
9.5. Case study 5: Incorporation, takeovers and earn-outs