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Lesson 119 A2g

Business assets disposal relief

You'll learn how Business Asset Disposal Relief (BADR) reduces your capital gains tax to a flat 14% rate on qualifying business disposals.

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In this lesson

  1. 0:00 Introduction to CGT reliefs overview
  2. 0:31 Business asset disposal relief explained
  3. 1:45 BADR lifetime limit and claim deadline
  4. 2:05 Qualifying disposals for BADR
  5. 3:07 Two-year ownership requirement

About this lesson

This lesson covers what counts as a qualifying disposal—including selling your sole trader business, partnership assets, or substantial shares in your own trading company—plus the two-year ownership requirement, the £1 million lifetime limit, and how BADR gains interact with your basic rate tax band. Understanding BADR is essential for TX and ATX papers, as it's a key relief that can significantly reduce your tax liability when you exit a business.

Duration: 3m

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