What is Business Asset Disposal Relief

What is Business Asset Disposal Relief in a Member's Voluntary Liquidation? Business Asset Disposal Relief formerly known as Entrepreneurs Relief is a tax relief scheme which can lower the payable rate of capital gains tax upon the sale or liquidation of a solvent limited company with Business Asset Disposal Relief.

Capital gains tax can be reduced to 10% for qualifying gains up to a lifetime limit of 1 million now this can represent a huge tax saving for directors who meet these qualifying conditions the rate of business asset disposal relief will increase to 14% in April 2025 and will increase again to 18% in April 2026.

In order to benefit from business asset disposal relief you must have a minimum shareholding of 5% when the sale or disposal is made there is no limit to the number of businesses you can sell and still qualify for this scheme however just as mentioned remember the lifetime limit is set at £1 million worth of capital gain sales so in summary you make your claim for business asset disposal relief when you dispose of a business part of the business and disposal can be facilitated by sale gifting or closing down the company through a solvent liquidation procedure known as a members' voluntary liquidation.

If you want to know more about how to close your solvent company down and claim business asset disposal relief please reach out to us at our team at Real Business Rescue.

https://www.realbusinessrescue.co.uk/...

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