Business asset disposal relief (BADR) (formerly Entrepreneurs relief (ER)) is a 10% capital gains tax relief. It is available to individuals (or trustees in some circumstances) but not to limited companies.
BADR may be available when you sell part or all of your business, or shares in your own company. Where the relief applies, the capital gain is taxed at an effective rate of just 10% instead of 10% or 28% (18% or 28% for residential property and carried interest).
There are some other tight restrictions to BADR:
Where the conditions are met it may also be possible to claim relief where gains are deferred as a result of Enterprise Investment Scheme or Venture Capital Trust investments.
Where a material disposal relates to a sale of shares or a partnership share, the person disposing is also able to claim relief against any gains on the disposal of an asset used in the business. This later disposal can happen within 3 years of the original disposal. The relief is restricted if rent is charged on the property.
For further information on any type of stamp duty please contact us.
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