VtaxP Toolbox: Business Asset Disposal Relief (Entrepreneurs' Relief) on share disposals

Sign up for Virtual Tax Partner © 'VtaxP' © tool to check the Business Asset Disposal Relief (Entrepreneurs' Relief) conditions for the disposal of shares in a private company.

Business Asset Disposal Relief (BADR) (formerly called Entrepreneurs' Relief) is a relief that reduces the rate of Capital Gains Tax (CGT) paid to 10% on any gains made on the disposal of shares or securities.

The difficult part is working out the different rules.

Does your disposal qualify for BADR?  

These VtaxP Business Asset Disposal Relief Shares and Securities tool covers the following disposals:

Disposals made by an individual:

• Between 6 April 2014 and 29 October 2018.
• Between 29 October 2018 and 5 April 2019.
• On or After 6 April 2019.

Covering the following different events:

1. Disposal of shares.
2. Disposal of shares following recent incorporation.
3. Any combination of any of the above.

This tool does not cover:

• Reliefs on the disposal of shares acquired under an EMI share option plan.
• Disposals of Employment-Related Securities (ERS) that are subject to Income Tax.

Tool FAQs

1. What does these tools do?

"Congratulations, your share disposal will qualify for Business Asset Disposal Relief"

• The tool works out if your disposal meets the qualifying criteria to claim Business Asset Disposal Relief.
• It applies across multiple different permutations of the rules and provides numerous different outcomes.
• It does not work out your gain or tax due, as these are the next steps: if BADR does apply tax is simply 10% of your gain.

2. How long does it take?

• Allow about 30-60 minutes if you are new to it and need to check some of the definitions and meanings (these are supplied by the tool).
• You also need to gather data to use the tool: you will soon work out what you need.
• About three minutes once you have run through it.

3. How long did it take to write and test these tools?

• About two weeks, the rules have been through numerous changes.

4. How long would it take to work your way through the legislation without the tools?

• Probably (based on our experience) and according to the different variations of the rules somewhere between three to five hours.

5. Which legislation?

The CGT legislation is:

Section 169H to 169V TCGA 1992, see Business Asset Disposal Relief legislation

6. What is the difficulty rating for Business Asset Disposal Relief?

• High: don't try this at home unless you are good at tax law.
• Check out the legislation you will find out why. 

7. What are the terms and conditions?

• You DO NOT need to be a subscriber of www.rossmartin.co.uk in order to use this tool.
• The login for the tool will be sent to you separately following payment.
• Use of the tool depends on your acceptance of our Terms and Conditions
• We are happy to double-check your results with you.

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