Illustration - BADR
In this illustration, you'll learn how Business Asset Disposal Relief (BADR) applies when selling multiple assets, and crucially, when associated disposals qualify for relief.
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In this lesson
- 0:00 Business Asset Disposal Relief overview
- 1:05 BADR eligibility and associated disposals
- 2:10 Discounted rent and partial BADR qualification
- 3:12 Calculating CGT with split relief treatment
About this lesson
The scenario walks through Jenny's disposal of shares in her trading company alongside an office building, showing you that associated assets can qualify for BADR even if they're not the main disposal, provided they meet the conditions. You'll also see how the relief changes when an asset is let to the company at a discounted rent rather than rent-free—a key distinction that determines what percentage of the gain qualifies for the 14% rate versus the standard 24% rate. This is essential exam technique for Advanced Taxation (ATX) and Strategic Business Reporting (SBR), where multi-asset disposals and relief eligibility are common case study scenarios.
Duration: 4m
Transcript
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