BADR Flashcards
1
Q
Business Asset Disposal Relief
Prior to 2020/21, What Was The Relief Called?
A
Entrepreneurs’ Relief.
2
Q
Business Asset Disposal Relief
How Does The Relief Interact With The Basic Rate Band?
A
Gains Utilise Any Unused Basic Rate Band in Priority.
3
Q
Business Asset Disposal Relief
What is The Aim of BADR?
A
To Reduce CGT on Qualifying Disposals to 10%.
4
Q
Business Asset Disposal Relief
What is The Limit to Which BADR Can be Claimed?
A
£1 Million.
(A Lifetime Limit)
£10 Million Prior to 11 March 2020.
5
Q
Business Asset Disposal Relief
For At Least 2 Years Prior to The ‘Material’ Disposal:
A
- The Shares Were Held in a ‘Personal Trading Company’; and
- The Shareholder Worked For The Company.
6
Q
Business Asset Disposal Relief
When Must BADR be Claimed?
A
The Anniversary of 31 January Following The Tax Year of Disposal.
