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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

3. •

   a disposal of trust business assets, see the Business asset disposal relief (entrepreneurs’ relief) ― trusts guidance note

TCGA 1992, s 169H

However, only the first option is applicable to sole traders. An associated disposal can only take place where there is a material disposal which