Business Asset Disposal Relief ( BADR)

An individual selling a business ( or in some instances part of a business) can benefit from a Capital Gains Tax relief which can mean that any gain arising on the sale is taxed at a current rate of 10%. The conditions which must be met in order to qualify for the relief are:-

  1. The asset must have owned for a minimum of 2 years.
  2. If shares in a company then the individual selling must own at least 5% of the ordinary share capital and be either an employee or director.