Business Reliefs (4) Flashcards
Business asset disposal relief for?
Individuals dispose of a business or part of a business
What does business asset disposal relief cover?
Relief covers first £1m of qualifying gains that an individual makes during their lifetime
Qualifying gain in business asset disposal relief?
Tax rate of 10% regardless of taxable income. Any gains in excesss of limit being charged at 20%
Business asset disposal relief conditions? (two years)
Asset must have been owned for 2 years prior to the date of disposal
Business asset disposal relief conditions? (whole)
A disposal of the whole, or part of a business run as an unincorporated business (acts on its own)
Business asset disposal relief conditions? (ceased)
Individual business assets of the individual’s or partnership’s trading business that has now ceased. This disposal must take place within 3 years
Business asset disposal relief conditions? (trading)
Disposal of shares in a trading company where individual has at least 5% shareholding in the company AND is an employee of company for 24 months prior to disposal
When £1 million lifetime limit is exceeded?
Gains in excess of limit will be subject to normal rates of CGT
How should any AEA and capital losses be deducted?
Firstly from gains that do not qualify for business asset disposal relief
When owned 100% of shares and had been a full time director?
Taxed at 10%
Gains that do not qualify for business asset disposal relief?
Are taxed at a higher CGT rate (20% or 18%/28%)
Business asset disposal relief lifetime limit?
£1000000
Business asset disposal relief rate of tax?
10%
Acronym for business asset disposal relief
For the tax win
F - Five %
T - Trading company
T - Two years
W - Work there
When taxable income in excess of £37700?
Tax at 20%
