CG63997 - Business Asset Disposal Relief: qualifying 바카라 사이트渁ssociated disposals바카라 사이트� by individuals: disposals before 18 March 2015

Entrepreneurs바카라 사이트� Relief was renamed in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.

The conditions that applied to disposals before 18 March 2015 are similar to the revised rules but do not require a minimum size of 바카라 사이트渕aterial disposal바카라 사이트�.

There will be 바카라 사이트渁 disposal associated with a relevant material disposal바카라 사이트� (or associated disposal) when all three of the following conditions are met 바카라 사이트� TCGA92/S169K(1)

Condition A. TCGA92/S169K(2).

That an individual disposes of:

  • all or part of their interest in the assets of a partnership, or
  • shares in, or securities of a company (or interests in such shares or securities).

The disposal of partnership interest, share or securities must qualify as a material disposal of business assets. However, there is no requirement either for a gain to arise on this disposal or for a claim to the relief to be made in respect of any gain that does arise.

Condition B. TCGA92/S169K(3).

That the associated disposal is made as part of the process of withdrawal of the individual from participation in the business of the partnership or the trading company (or a company that is a member of the trading group of which the company is a member).

See CG63998 for a discussion of what withdrawal means.

Condition C. TCGA92/S169K(4).

That the asset which is subject of the associated disposal had been used for the purposes of the partnership business or company business throughout a period of 1 year ending with either

  • the date of the material disposal of business assets , or if earlier
  • the cessation of the partnership or company business.

If the individual disposes of an interest in an asset, Condition C refers to the use of the asset in which the interest is held, not the use of the interest.

In certain circumstances the amount of the gain on an 바카라 사이트渁ssociated disposal바카라 사이트� that qualifies for the relief may be restricted. See CG64145.