CG64120 - Business Asset Disposal Relief: calculation: introduction: scope of guidance

Entrepreneurs’ 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.

The guidance between CG64125 to CG64145 deals with calculation of the amount of the “chargeable gains” after Business Asset Disposal Relief. The following are covered:

Manual page - -
CG64125 Amount of the relief - General TCGA92/S169N
CG64130 Amount of the relief - General - Examples -
CG64135 Amount of the relief - General - Held over gains -
CG64136 Amount of the relief - General - Rolled over gains -
CG64140 Special provisions for certain Trust disposals TCGA92/S1690
CG64145 Special provisions for certain associated disposals TCGA92/S169P

Business Asset Disposal Relief does NOT give a blanket exemption from Capital Gains Tax where the relevant qualifying conditions are met. For disposals made up to 22 June 2010 it acts to reduce the amount of qualifying gains to arrive at “chargeable gains” that are then liable to Capital Gains Tax at the normal rate. For disposals made on or after 23 June 2010 qualifying gains are liable to Capital Gains Tax at a relief rate of 10%.