Business asset disposal relief for partnerships

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

This guidance note discusses the application of business asset disposal relief (BADR) for partners only. BADR is a capital gains tax relief which reduces the rate of tax on qualifying gains to 10%.

BADR relief is available for individuals whether they operate as a sole trader, in partnership or through their personal company. Companies cannot claim BADR. There is a lifetime limit on BADR of £1m of total capital gains.

The rules for sole traders are the same as those for partners and there is more detail in the Conditions for business asset disposal relief guidance note. The commentary below sets out how these rules apply to partners in partnerships.

For further guidance on BADR and partnerships, see Simon’s Taxes C3.1302C–C3.1303A and HMRC guidance in CG63950P onwards.

Overview of business asset disposal relief for partnerships

To be eligible for BADR, a disposal must be one of the three main categories as follows:

•
a material disposal of business assets which applies when the business or part of the business is sold with modifications when the business

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more

Personal Tax

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more

Corporation Tax

Indexation allowance and rebasing

Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview

14 Jul 2020 11:59 | Produced by Tolley in association with Jackie Barker of Wells Associates Read more

��˾��ҹ��