CGT case law

Question 1

Assem Allam v HMRC

Answer 1

BADR qualification - to determine whether company is trading or not should take holistic approach to determine trading v non-trading activities, and measure whether substantial in the context of the company as a whole. Look at company history not one point in time

Question 2

What is an associated disposal for BADR purposes?

Answer 2

Taxpayer makes material disposal of assets (shares/business property) as part of withdrawal from the business, and the asset disposed has been used in business for 2 years prior and owned by individual 3 years prior.

Common when director owns at least 5% of shares and owns premises, and sells both at similar time.