My wife and I are owners (60%:40%) of a UK company. We have approximately £1 million in cash, and this has accumulated over the past 15 years from our profits. We do not have any other investments or property. If we were to sell or close the business, would the excess cash create a potential capital gains tax problem for business asset disposal relief (BADR) eligibility? 

Arthur replies: 

It is not clear to me from what you have written what exactly is in the company. Even though HMRC has become more lenient in this area over the past few years, nevertheless, in your scenario if there is nothing else in the company but £1 million accumulated cash, then most likely, HMRC will refuse a claim for BADR. See HMRC’s Capital Gains Manual at CG64090.