Capital Gains Tax can take a significant bite out of the proceeds when you sell an asset or a business, but valuable reliefs can reduce the bill. Two of the most important are rollover relief and Business Asset Disposal Relief.
Capital Gains Tax Basics
Capital Gains Tax is charged on the profit when you dispose of certain assets. The gain, rather than the full sale price, is taxed, and the rate depends on the asset and your circumstances. Reliefs and the annual exempt amount can reduce what is due.
Rollover Relief
Rollover relief allows the gain on the disposal of certain business assets to be deferred where the proceeds are reinvested in new qualifying assets. The gain is effectively rolled into the new asset, postponing the tax until a later disposal.
Business Asset Disposal Relief
Business Asset Disposal Relief can reduce the Capital Gains Tax rate on qualifying business disposals, subject to a lifetime limit and conditions that must be met for a minimum period beforehand. Early planning helps secure it.
How TaxDigit Can Help
Our Guildford-based team helps clients minimise Capital Gains Tax using reliefs such as Business Asset Disposal Relief. Get in touch before you sell.
Business Asset Disposal Relief: UK-Wide Support from TaxDigit
Capital Gains Tax reliefs such as rollover relief and Business Asset Disposal Relief matter to business owners across the United Kingdom, not only those near our Guildford head office. TaxDigit advises clients UK-wide, from sole traders and family companies to growing groups, on how to defer or reduce the tax due when they sell business assets or exit a company.
Our chartered certified accountants help you check the conditions, time the disposal and structure the sale so that the maximum relief is secured. We support clients remotely and on-site, wherever they are based in the UK.
How we help with Business Asset Disposal Relief
- Reviewing whether a disposal qualifies for Business Asset Disposal Relief and the lifetime limit
- Checking the minimum ownership and trading conditions are met well before a sale
- Applying rollover relief where proceeds are reinvested in new qualifying business assets
- Calculating the Capital Gains Tax due and the saving from each available relief
- Coordinating the disposal with your wider personal and corporation tax position
For the official position, HMRC sets out the rules in detail in its guidance: HMRC Business Asset Disposal Relief guidance.
Frequently Asked Questions
What is Business Asset Disposal Relief?
Business Asset Disposal Relief reduces the rate of Capital Gains Tax on qualifying disposals of all or part of a business, subject to a lifetime limit and conditions that must be met for a minimum period beforehand.
How is rollover relief different from Business Asset Disposal Relief?
Rollover relief defers a gain when proceeds are reinvested in new qualifying assets, while Business Asset Disposal Relief reduces the tax rate on a qualifying business disposal. The two can apply to different transactions in your planning.
Can TaxDigit help if I am not based in Guildford?
Yes. We act for clients UK-wide and provide Capital Gains Tax and Business Asset Disposal Relief advice remotely as well as from our Guildford office.