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Where Taxpayers and Advisers Meet

Business Asset Disposal Relief

Haydon1
Posts:11
Joined:Fri Feb 08, 2019 10:53 am
Business Asset Disposal Relief

Postby Haydon1 » Tue Apr 19, 2022 5:17 pm

Think I may have put this in the wrong topic and maybe that is why I have not had any replies.

Can BADR be claimed if a business premises (that has been owned for over 20 years by a sole trader) is sold but the business continues to trade elsewhere?

Thank you

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Business Asset Disposal Relief

Postby AGoodman » Wed Apr 20, 2022 11:07 am

No, I don't think so.

"TCGA s.169I(2) For the purposes of this Chapter a disposal of business assets is—

(a) a disposal of the whole or part of a business,

(b) a disposal of (or of interests in) one or more assets in use, at the time at which a business ceases to be carried on, for the purposes of the business, or

(c) a disposal of one or more assets consisting of (or of interests in) shares in or securities of a company.

Haydon1
Posts:11
Joined:Fri Feb 08, 2019 10:53 am

Re: Business Asset Disposal Relief

Postby Haydon1 » Wed Apr 20, 2022 3:33 pm

Thank you for your reply.
Would closing a retail shop and going to mail order only be considered (a) a disposal of the whole or part of a business?
Part, being closing and selling the retail shop?
Thank you

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Business Asset Disposal Relief

Postby AGoodman » Fri Apr 22, 2022 6:36 pm

I don't know I'm afraid. My gut instinct is no but that is based on very little - it's not a point i've ever looked at

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Business Asset Disposal Relief

Postby bd6759 » Fri Apr 22, 2022 11:54 pm

I’m in the no camp as well. Maybe if there were two distinct parts co-existing together: retail and online, you might have a case, but as presented the online side appears to be a new business.

jamesmcgrill
Posts:3
Joined:Wed May 25, 2022 4:51 pm

Re: Business Asset Disposal Relief

Postby jamesmcgrill » Wed May 25, 2022 5:10 pm

Whilst an EIS style relief could be the answer for the go-getters of today, an abrupt end to BADR is unlikely to serve those looking to retire and cash-in on their business and benefit from up to £100,000 of relief that is currently within touching distance.

jamesmcgrill
Posts:3
Joined:Wed May 25, 2022 4:51 pm

Re: Business Asset Disposal Relief

Postby jamesmcgrill » Sun May 29, 2022 6:48 am

Rollover relief allows a trader to defer the payment of capital gains tax where the disposal proceeds of a business asset are reinvested in a new business asset. The deferral is achieved by deducting the chargeable gain from the cost of the new asset https://www.connexusconsultants.co.uk It can be where proceeds are fully or partially reinvested.

jamesmcgrill
Posts:3
Joined:Wed May 25, 2022 4:51 pm

Re: Business Asset Disposal Relief

Postby jamesmcgrill » Sun May 29, 2022 7:51 am

Rollover relief allows a trader to defer the payment of capital gains tax where the disposal proceeds of a business asset are reinvested in a new business asset. The deferral is achieved by deducting the chargeable gain from the cost of the new asset <a href="https://www.connexusconsultants.co.uk/plans-pricing">.</a> It can be where proceeds are fully or partially reinvested.


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