Business asset disposal relief for sole traders

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Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Business asset disposal relief for sole traders

Copyright © 2024 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

This guidance note discusses the application of business asset disposal relief (BADR), previously known as entrepreneurs’ relief, for sole traders only.

See also the following guidance notes:

  1. •

    Conditions for business asset disposal relief

  2. •

    Business asset disposal relief for partnerships

  3. •

    Business asset disposal relief on shares and securities

  4. •

    Maximising business asset disposal relief

For further detail, see Simon’s Taxes C3.1302C–C3.1303A.

Overview

To be eligible for business asset disposal relief, a disposal must be:

  1. •

    a material disposal of business assets

  2. •

    an ‘associated disposal’ where an asset is disposed of which is associated with a relevant material disposal’ eg where an asset is owned personally but used for the purpose of the business carried on by a company or partnership

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  • 01 Mar 2023 13:31

Home/ Tolley Tax Guidance/ Owner-Managed Businesses / Advising sole traders

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