There are two main conditions to follow if you intend to sell your shares in the company. Restrictions on Selling Shares or Securities In this case, you would need to dispose of the business assets within three (3) years to qualify for Business Asset Disposal Relief. The same eligibility criteria also applies when closing down a business instead. If you sell all or a part of your business, you must either be a sole trader or in a business partnership and have owned the business for a minimum of two (2) years before the date you sell it. Note: A trustee of settlements selling assets held in the trust may also qualify for HM Revenue and Customs Business Asset Disposal Relief. Qualifying assets which you lent to the business or to your personal company.Shares acquired through an Enterprise Management Incentive (EMI) scheme after the 5th of April 2013.Shares or securities in a 'personal company' if you have 5% (or more) shares and voting rights.All (or part) of a business as a sole trader or a business partner (including assets of the business after it closed).The qualifying conditions for the reduced rate of BADR Capital Gains relate to the sale or 'disposal' of:
You could pay Capital Gains Tax (CGT) at 10% on the gains of assets that qualify for Business Asset Disposal Relief (BADR). In simple terms, business disposals for tax purposes refer to the transfer of ownership of a qualifying asset to a buyer. Eligibility for Business Asset Disposal Relief