Mark McLaughlin warns that a business’s activities need to be sufficient to amount to a ‘trade’ for business asset disposal relief purposes.
Business asset disposal relief (BADR) usefully offers a capital gains tax (CGT) rate of 10% on lifetime gains of up to £1m, where certain conditions are satisfied.
Jumping the BADR hurdles
However, the BADR relief conditions can be difficult. A detailed analysis of the rules is beyond the scope of this article. However, in very broad terms, BADR is available in respect of (among other things) a material disposal of a company’s shares where for a minimum of two years to disposal:
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the company is the individual’s ‘personal company’;
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the individual is an officer or employee of the company (or of a company within the
