The ‘helpful sidekick’ of Business Asset Disposal Relief (BADR), formally entrepreneurs’ relief, has been hiding in the wings for three years. It is a CGT disposal relief, which can be seen as a useful net to catch investors who may not be able to benefit from BADR, Enterprise Investment Scheme (EIS) or The Seed Enterprise Investment Scheme (SEIS).
Why you may not have seen the relief in action
Claims for the relief are only available to shares subscribed on or after 17 March and subject to the three-year holding requirement. The first time the relief can be seen in action will be on relevant disposals made in the tax year ended 5 April 2020 onwards.
Where to start
Unlike BADR, this relief is only available to the subscriber of ordinary shares. It will be necessary to determine whether the disposal is a qualifying share, a potentially qualifying