When entrepreneurs’ relief was rebranded in 2020 as business asset disposal relief, it was pretty clear what some in the Treasury thought of it, says Chris Etherington, partner at RSM
As we approach Rachel Reeves’ first Budget as chancellor, these may be the last days for business owners to benefit from what has previously been badged as the ‘UK’s worst tax break’.
BAD Relief (BADR) allows for some taxpayers to benefit from a 10% capital gains tax (CGT) rate on the sale of certain business assets, up to a maximum of £1m of capital gains in their lifetime.
It is commonly claimed by business owners on the sale of shares in their company, allowing them to potentially benefit from a £100,000 tax saving. It used to be substantially more generous prior to the changes made in 2020 when it could provide a tax saving of up to £1m.
The history of BADR is a messy one and may partly explain the ill-feeling some have towards it.
