{"id":5752,"date":"2019-01-22T21:53:45","date_gmt":"2019-01-22T21:53:45","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=5752"},"modified":"2024-11-08T12:22:36","modified_gmt":"2024-11-08T12:22:36","slug":"business-asset-disposal-relief-scheme","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/business-asset-disposal-relief-scheme\/","title":{"rendered":"What is the Business Asset Disposal Relief scheme, and is my business eligible?"},"content":{"rendered":"
\n Last updated: 8 Nov 2024<\/strong>\n <\/div>\n \n

Change can be pretty costly for business owners. Whether it\u2019s deciding to sell your business, getting rid of major assets, or selling off shares in your limited company, chances are you\u2019ll need to think long and hard about how much you actually stand to gain or lose by shedding, selling, or gifting part of your company \u2013 particularly where tax is concerned.<\/p>\n

Fortunately, the UK Government has a special relief scheme in place that is designed to reduce the amount of Capital Gains Tax payable by business owners when they are disposing of certain assets. This scheme is called Business Asset Disposal Relief, which replaced the Entrepreneurs’ Relief in Finance Bill 2020<\/a>.<\/p>\n Our Fully Inclusive Package - the ideal way to form a limited company<\/span><\/a>\n \n

The scheme features a broadly inclusive set of requirements that could ultimately save you and your business a great deal of money in tax, so it’s worth getting to grips with the basics to gain a better understanding of how the Business Asset Disposal Relief scheme can benefit you and your business.<\/p>\n

What is the Business Asset Disposal Relief scheme?<\/h3>\n

The Business Asset Disposal Relief scheme<\/a> is a government tax allowance that reduces the amount of Capital Gains Tax<\/a> you need to pay on the disposal of qualifying business assets. Those disposals must have occurred on or after 6 April 2008 and meet certain conditions throughout a one-year qualifying period that either includes the date of disposal or the date your business stopped trading.<\/p>\n

It\u2019s also important to note that, as an individual under the scheme, you are restricted to a lifetime limit for qualifying capital gains. The limits are as follows:<\/p>\n