BADR

The things we do for tax

This episode is a refresher of Business Asset Disposal relief rules. The relief can see a capital gain of up to £1m taxed at 10% subject to meeting all the qualifying conditions.

The episode runs through the main rules and discusses some of the problem areas.

The guest is the excellent Ros Martin. Ros was employed at HMRC before commencing her own tax and training consultancy. Ros can be contacted at taxdr.co.uk or [e-mail]

Who can claim BADR? – Categories of assets that qualify for BADR – Directors – Time limits for claim – How the 5% is calculated – Points to watch for with directors and employees – When and how to make the BADR claim – Does the company qualify? – Ensure the business is a trading company – Cash balances – Clearance procedures – Trade, professions and FHL – Goodwill and anti-avoidance – Unascertainable deferred consideration – Partial sales – Trusts – Investments in subsidiaries – Partial disposals – Associated disposals – EMI – Cessation of trade – Anti-avoidance

Check www.thethingswedofortax.co.uk for new episodes providing CPD for tax accountants

Chapter

1. BADR (00:00:00)

2. Who can claim BADR? (00:02:10)

3. Time limits (00:03:27)

4. Categories of assets that qualify for BADR (00:03:56)

5. Directors (00:04:59)

6. How the 5% is calculated (00:05:12)

7. Officer or employee - points to watch (00:05:42)

8. When and how to make the BADR claim (00:07:39)

9. It is the company or partnership that has to qualify (00:09:10)

10. Trading companies (00:10:24)

11. The high cash balance problem (00:12:18)

12. Clearance - to clear or not to clear (00:13:10)

13. Trade, profession and FHL (00:14:59)

14. Goodwill and anti-avoidance (00:16:00)

15. Unascertainable deferred consideration (00:16:56)

16. Partial sales (00:21:37)

17. Trustees (00:22:25)

18. Investment subsidiaries (00:24:54)

19. Sale of part of a business e.g. accountancy practices (00:26:39)

20. Associated disposals (00:32:39)

21. EMI (00:35:11)