188体育

Entrepreneurs鈥� relief was renamed in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.

Over the last 18 years C has built up a thriving business manufacturing garden furniture. In August 2020 he receives an unexpectedly good offer from a national chain of garden centres so decides to sell the business. This disposal of his business produces gains of 拢400,000. He claims Business Asset Disposal Relief in respect of this 鈥榤aterial disposal鈥� of his whole business. This is his first claim for Business Asset Disposal Relief.

C is also the beneficiary of a settlement. The property from which he carried on his business belongs to the settlement of which he is tenant for life (this being the sole interest in possession). When C disposes of his business, the trustees also decide to sell the property at the same time. This gives rise to a gain to the trustees of 拢1,500,000.

The qualifying beneficiary (C) and trustees jointly claim for Business Asset Disposal Relief in respect of the gain arising on the disposal of the settlement property. Because the disposal by C of his business is a 鈥榤aterial disposal鈥� by him as an individual which qualifies for Business Asset Disposal Relief and the property is a 鈥渟ettlement business asset鈥� used in C鈥檚 business throughout the 2 years prior to the disposal of his business.

The disposal happened after 11 March 2020 so the lifetime limit of gains that qualify for relief is 拢1 million so that trustees qualify for Business Asset Disposal Relief on 拢600,000 of the gain of 拢1,500,000.