The following Share Incentives practice note provides comprehensive and up to date legal information covering:
Business asset disposal relief (BADR), is a capital gains tax (CGT) relief designed to encourage individuals to set up and expand their own businesses. Provided that the conditions are satisfied, the effect of the relief is to reduce the rate of CGT on the sale of certain business assets to 10%. Although it was previously known as entrepreneurs’ relief, it is renamed as business asset disposal relief with effect from 6 April 2020.
BADR applies to individuals, whether operating as sole traders or in partnership, or through a corporate vehicle. It also applies where the business assets are held by the trustees of a settlement. Companies are not eligible for BADR.
There is a lifetime limit on the amount of BADR that can be claimed by any one individual. The maximum amount of gains that can benefit from BADR reduced from £10m to £1m in relation to qualifying disposals made on or after 11 March 2020, under legislation introduced under the Finance Act 2020. For further information on the BADR lifetime limit, see Practice Note: CGT—business asset disposal relief (formerly entrepreneurs' relief).
This Practice Note looks specifically at condition C and condition D referred to in section 169I of the Taxation of Chargeable Gains Act 1992 (TCGA 1992), which are alternative tests to be met in order for a disposal of shares acquired though
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
This Practice Note considers the meaning and use of conditions precedent in commercial arrangements. It also considers typical conditions precedent and drafting issues.What are conditions precedent?A condition precedent in a commercial contract details an event which must take place before:•a
This Practice Note covers the legal framework and regulatory guidance to be considered in determining whether an arrangement constitutes a contract of insurance and the possible consequences of carrying on activities relating to a contract of insurance without the requisite regulatory permissionsThe
This Practice Note looks at CE-File electronic working in the courts under CPR PD 51O, in the context of case management. It provides guidance on how to file a document electronically, deal with rejected electronic filings, issue a claim electronically, file electronic bundles (eBundles) for case
Case number [insert number][In the principal registryORIn the [insert court location] FAMILY court]Sitting at [insert place]Notice of actingBetween[insert petitioner name]Petitionerand[insert respondent name]RespondentTake notice that we [insert name of firm] have been appointed to act as the
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.