This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Won’t get fooled again!

By Peter Rayney, May 2021

Peter Rayney highlights six potential traps that can lead to claims for business asset disposal relief being rejected on company share sales. 

Business asset disposal relief (BADR) is an important and valuable capital gains tax (CGT) relief. However, the relief conditions are such that BADR can be easily lost. Here is a selection of potential ‘traps’ for the unwary.  

1. Avoid being caught out by adverse shareholder ‘dilution’ 

One of the key BADR conditions on share sales requires the shareholder/owner-manager to hold at least 5% of the ordinary share capital, 5% of the voting rights and 5% of the relevant economic rights (being the personal company conditions in TCGA 1992 s 169S (3)) throughout the relevant 24-month period.  

Owner-managers would never expect

This is one of our 2022 Premium articles

To see this article in full and unlock access to our complete library of 2022 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!