Illustrations - BADR
You'll learn how Business Asset Disposal Relief (BADR) works in practice and how to calculate capital gains tax when multiple disposals qualify for different reliefs.
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In this lesson
- 0:00 Business Asset Disposals and BADR Relief
- 1:03 Pierre's Capital Gains Calculation
- 2:37 Qualifying for BADR: Share Disposals
- 3:32 Lola's Capital Gains Tax Liability
About this lesson
This video walks through two worked illustrations: a business owner selling a warehouse and goodwill alongside a personal asset, and a shareholder disposing of company shares alongside personal possessions. You'll see exactly when BADR applies, how to separate qualifying from non-qualifying gains, and how to apply the correct tax rates (14% for BADR assets, 18% or 24% for other gains) to minimise your overall tax liability. This is essential for Advanced Taxation (ATX) and helps you master a common exam scenario where candidates must identify which reliefs apply, offset the annual exempt amount strategically, and calculate the final liability correctly. The illustrations show why the order in which you apply reliefs matters and how to work with the basic rate band to determine which gains fall into the higher rate threshold.
Duration: 5m
Transcript
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