What is Business Asset Disposal Relief / Entrepreneurs' Relief and how can it benefit you?
(Business Asset Disposal Relief was known as Entrepreneurs’ Relief before 6 April 2020.)
If you’re a business owner planning to sell up or wind up your business, Business Asset Disposal Relief / Entrepreneurs’ Relief can save you a small fortune on your tax bill.
The scheme enables entrepreneurs who are selling all or part of their business to pay just 10% in Capital Gains Tax (CGT) on profits over the lifetime of their business.
This 10% CGT rate is considerably less than the 18% (for basic rate income tax payers) or 28% (for higher rate payers) that would otherwise be charged.
Business owners can claim up to £10m over their lifetime under the relief scheme.