Q&As

If an EBT trustee holds shares on bare trust for an employee, can CGT business asset disposal relief be available?

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Published by a ÀÏ˾»úÎçÒ¹¸£Àû Share Incentives expert
Published on: 16 June 2025
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In order for capital gains tax (CGT) business asset disposal relief (BADR) to apply, the requirements set out under sections 169H–169SH of the Taxation of Chargeable Gains Act 1992 (TCGA 1992) will need to be met.

In summary, in the context of an employee's shares in their employer (which is either a trading company or the holding company in a trading group), the relevant employee will need to:

  1. •

    be an employee or officer of the company (or, if the company is the holding company of a trading group, of another company in its group)

  2. •

    hold at least 5% of the company's ordinary share capital and, by virtue of that holding, at least 5% of the company's voting rights, and

  3. •

    by virtue of that holding, they must also either be beneficially entitled to at least 5% of the proceeds

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Jurisdiction(s):
United Kingdom

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