Disapply paper for paper, QCBs and BADR
You'll learn when to elect out of paper for paper relief on a takeover and how to use Business Asset Disposal Relief (BADR) strategically to reduce your tax bill.
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In this lesson
- 0:00 Paper for paper relief in takeovers
- 0:20 When to disapply automatic relief
- 0:49 Disapplying relief to claim ADR instead
- 2:01 ADR eligibility for QCBs explained
About this lesson
This lesson covers the automatic relief available when you receive shares or qualifying corporate bonds in exchange for your original shareholding, and crucially, when disapplying this relief works in your favour. You'll discover that by paying tax immediately on your original shares at the BADR rate, you can often pay significantly less overall than deferring the gain—particularly when your new shareholding falls below the 5% threshold needed to qualify for BADR on future disposals. This is essential knowledge for ATX and SBR papers, where takeover scenarios frequently test your ability to optimise tax positions.
Duration: 3m
Transcript
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