Capital gains on business assets

Selling business assets, and the reliefs that reduce the tax.

What it means

Disposing of business assets — shares, premises, goodwill — can generate a chargeable gain. Business Asset Disposal Relief reduces the rate on qualifying disposals up to a lifetime limit.

Why it matters

For most owners the sale of the business is the largest financial event of their life, and the difference between qualifying and not is very large.

What it looks like in practice

Qualifying conditions typically include a minimum shareholding, being an officer or employee, and a minimum holding period — so planning has to start years ahead.\n\nRollover and holdover reliefs defer gains in other circumstances.

What to watch out for

Restructuring shortly before a sale, which can restart qualifying periods. And assuming the relief and the lifetime limit will still be there — both have been cut.

Where to get proper advice

GOV.UK for the current rates and thresholds, which move most years. Your accountant before acting — this is exactly the kind of question a fee is for.