Business Asset Disposal Relief

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Eligibility

You may be able to pay less Capital Gains Tax when you sell (or 바카라 사이트˜dispose of바카라 사이트™) all or part of your business.

Business Asset Disposal Relief means you바카라 사이트™ll pay tax at either:

  • 14% on all gains on qualifying assets disposed of from 6 April 2025
  • 10% on all gains on qualifying assets disposed of on or before 5 April 2025

Business Asset Disposal Relief was known as Entrepreneurs바카라 사이트™ Relief before 6 April 2020.

If you바카라 사이트™re selling all or part of your business

To qualify for relief, both of the following must apply for at least 2 years up to the date you sell your business:

  • you바카라 사이트™re a sole trader or business partner
  • you바카라 사이트™ve owned the business for at least 2 years

The same conditions apply if you바카라 사이트™re closing your business instead. You must also dispose of your business assets within 3 years to qualify for relief.

If you바카라 사이트™re selling shares or securities

To qualify, both of the following must apply for at least 2 years up to the date you sell your shares:

  • you바카라 사이트™re an employee or office holder of the company (or one in the same group)
  • the company바카라 사이트™s main activities are in trading (rather than non-trading activities like investment) - or it바카라 사이트™s the holding company of a trading group

There are also other rules depending on whether or not the shares are from an Enterprise Management Incentive (EMI).

If the shares are from an EMI

You must have both:

  • bought the shares after 5 April 2013
  • been given the option to buy them at least 2 years before selling them

If the shares are not from an EMI

For at least 2 years before you sell your shares, the business must be a 바카라 사이트˜personal company바카라 사이트™. This means that you have at least 5% of both the:

  • shares
  • voting rights

You must also be entitled to at least 5% of either:

  • profits that are available for distribution and assets on winding up the company
  • disposal proceeds if the company is sold 

If the number of shares you hold falls below 5% because the company has issued more shares, you may still be able to claim Business Asset Disposal Relief.

You need to choose or 바카라 사이트˜elect바카라 사이트™ to be treated as if you had sold and re-bought your shares immediately before the new shares were issued. This will create a gain on which you can claim Business Asset Disposal Relief.

You can also choose or 바카라 사이트˜elect바카라 사이트™ to postpone paying tax on that gain until you come to sell your shares.

You can do this by:

  • completing the additional information section of the Capital Gains summary form of your tax return
  • writing to HMRC if you do not have to complete a tax return for the year

If the company stops being a trading company

If the company stops being a trading company, you can still qualify for relief if you sell your shares within 3 years.

If you바카라 사이트™re selling assets you lent to the business

To qualify, both of the following must apply:

  • you바카라 사이트™ve sold at least 5% of your part of a business partnership or your shares in a personal company
  • you owned the assets but let your business partnership or personal company use them for at least one year up to the date you sold your business or shares - or the date the business closed

If you바카라 사이트™re a trustee

You may also qualify if you바카라 사이트™re a trustee selling assets held in the trust.

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