Business Asset Disposal Relief
At SMH Chartered Accountants we understand that managing capital gains tax can be a complex and challenging task, especially for entrepreneurs looking to sell their businesses. That’s why we offer a comprehensive service for Business Asset Disposal Relief (BADR) to help our clients make the most out of their hard work.
What is Business Asset Disposal Relief?
Capital Gains Tax (CGT) is a tax on the profit made when you sell or dispose of an asset that has increased in value. This can include assets such as property, shares, and businesses. Business Asset Disposal Relief is a special tax relief that reduces the amount of CGT you need to pay when you sell all or part of your business.
To qualify for BADR, you must meet certain conditions, such as owning at least 5% of the shares and having been an employee or officer of the company for at least two years. BADR can significantly reduce your CGT liability, with a lifetime limit of £1 million.
Briefly, the relief is available to:
- Sole traders and partners who sell the whole or part of their businesses.
- Company directors and employees who sell a ‘material stake’ in a ‘qualifying company’. A ‘material stake’ means that the shareholder works for the company, owns at least 5% of the share capital and is able to exercise at least 5% of the voting rights
- Company directors and employees who acquired shares under an EMI option
How can we help with Business Asset Disposal Relief?
Our team of tax experts has extensive experience in helping entrepreneurs navigate the complexities of capital gains tax and Business Asset Disposal Relief. We offer a range of services tailored to meet your needs, including:
- Advising on eligibility – We can assess your business and help you determine whether you meet the criteria for BADR.
- Tax planning – We can work with you to develop a tax-efficient strategy for selling your business and making the most of BADR.
- Valuation – We can help you accurately value your business, which is crucial when calculating CGT liability and determining the amount of BADR you are entitled to.
- Compliance – We can assist you with all aspects of compliance, including completing and filing tax returns, and making sure you meet all the necessary deadlines.
Why Choose SMH Group?
At the SMH Group we understand that every client’s needs are unique, and we take a tailored approach to each individual case. We pride ourselves on delivering exceptional service and support to our clients, helping them achieve their financial goals and maximise their tax efficiency.
Our team of tax experts has extensive experience in capital gains tax and Business Asset Disposal Relief, and we have a proven track record of success in helping our clients minimise their tax liabilities and achieve their financial objectives.
If you are an entrepreneur looking to sell your business, contact the SMH Chartered Accountants team on info@smh.group or 0114 266 4432.