Business asset disposal relief

Business Asset Disposal Relief (BADR) support

Looking to maximise your financial gains on selling or winding down your business?

Procure generous tax saving by paying less Capital Gains taxes!

Starting from £500.00 + VAT


When you have invested your time in building a business, you want to make sure you retain as much of the profit as you can when you sell it.

Capital gains tax can take your breath away, but you can utilise a vital tax relief when ‘disposing’ of business assets.

Through BADR, you can reduce the capital gains tax rate to 10%.

Our specialists can make sure your business qualifies for this valuable tax break.

We believe it’s essential to begin your tax planning at least a year before the proposed sale so 3E’S can move quickly to get you the most value out of BADR.

When you become qualified for the relief

Business Asset Disposal Relief is available on disposals of:
  • the whole or a part of a business
  • assets in use when the business shuts down
  • shares or securities in a trading company
The following must be the case for at least two years up to the date you sell your business
  • You’re a sole trader or business partner
  • You’ve owned the business

What you get with 3E’S Business Asset Disposal Relief service

Our clients love us for our brilliant services.

Is 3E's the right choice
for your business?

Here at 3E’S, we like to keep things simple. We could throw a long list of reasons at you for working with us. We’ll stick with a few:

Speed up the asset disposal process with our streamlined tax relief strategies.

Optimise tax benefits from business asset disposal with our specialised advice.

Our professionals provide bespoke strategies to maximise your relief benefits.

We ensure you get the most out of your asset disposal without overpaying for services.

Let us handle the complexities of asset disposal while you plan your next business move.

Frequently asked questions

The tax rate for Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief) is 10% (2024-25). This relief allows eligible individuals to pay a reduced capital gains tax rate of 10% on qualifying gains up to a lifetime limit of £1 million.

To claim Business Asset Disposal Relief, you need to:

  • Include details of the qualifying disposal on your Self Assessment tax return
  • Fill in the capital gains summary pages and indicate that you are claiming Business Asset Disposal Relief
  • Include any additional information required by HMRC, such as details of the assets disposed of and the date of disposal
  • Submit your completed Self Assessment tax return by the relevant deadline

If you have already submitted your return and need to claim the relief, you can amend your return within 12 months of the original filing deadline.

Yes, there are several restrictions and conditions that must be met to qualify for Business Asset Disposal Relief:

  • You must be a sole trader, business partner, or hold shares in a personal trading company
  • You must have owned the business assets for at least 2 years before the disposal
  • For company shares, you must hold at least 5% of the company’s shares and voting rights, and have done so for at least 2 years
  • The company must be a trading company or the holding company of a trading group

Yes, Business Asset Disposal Relief can be claimed multiple times, provided that the total qualifying gains do not exceed the lifetime limit of £1 million. Once you reach this limit, any further gains will be subject to the standard capital gains tax rates.

Yes, you must claim Business Asset Disposal Relief within 12 months from the 31 January following the end of the tax year in which the disposal took place. For example, if you disposed of an asset in the 2022/23 tax year, you have until 31 January 2025 to make the claim.

In some cases, Business Asset Disposal Relief can be combined with other tax reliefs, such as:

  • Gift hold-over relief: This allows you to defer the gain when gifting business assets or shares.

  • Incorporation relief: This defers the gain when transferring a business to a company.

  • Rollover relief: This defers the gain when you reinvest the proceeds from the sale of business assets into new qualifying assets.

However, the interaction between different reliefs can be complex, and it is advisable to seek professional advice to ensure you maximise your tax benefits and comply with all applicable rules and regulations. Please contact us for more information.

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