Ken Moody recalls a recent interaction with a client firm and recounts how a fundamental issue for business asset disposal relief can easily be confused.
Business asset disposal relief (BADR) may now be a pale shadow of what it once was, but it remains a useful relief for small businesses.
My attention was recently drawn, inadvertently, to a fundamental BADR issue by a client firm.
Asset used by a sole trader
We had been discussing BADR in the context of the disposal of a property used by a company and whether BADR would apply. It was understood that the asset needed to remain in use for the purposes of the business at the time the business ceased.
That was the fundamental issue which I was obliged to clarify as we were mixing up our apples with our oranges and pears: our ‘apples’ being an asset used in a sole
