Interaction of BADR and incorporation relief
In this lesson, you'll learn how Business Asset Disposal Relief (BADR) and incorporation relief interact when you incorporate a sole trader business into a company.
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In this lesson
- 0:00 Incorporation Relief vs Business Asset Disposal Relief
- 0:14 Why Incorporation Relief Takes Priority
- 0:29 Ownership Period Rules for Disposal Relief
- 0:51 Conditions for Business Asset Disposal Relief
- 1:08 Electing to Disapply Incorporation Relief
About this lesson
You'll discover why incorporation relief takes priority, how to carry forward your unincorporated business ownership period to strengthen your BADR claim on future share disposal, and the conditions you must meet to qualify for BADR (5% ownership, employee status, two-year holding period). You'll also explore the strategic option to elect out of incorporation relief if you expect not to satisfy BADR conditions later, and the critical deadline for making this election.
Duration: 2m
Transcript
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