C3.1302A Business asset disposal relief on disposal of shares—personal company rules
Business asset disposal relief (BADR), which was previously known as entrepreneurs' relief prior to April 2020, is available on a disposal of shares in, or securities of, a company provided one of conditions A, B, C, or D is met (or for disposals before 6 April 2013, if condition A or B is met).
In Tenconi1, the FTT held that guarantee rights in a company which was limited both by share capital and guarantee rights were not shares or securities. The disposal of the beneficial interest in the rights therefore did not qualify for BADR.
Condition A
Condition A2 is that throughout the period of two years ending with the date of disposal (one year for disposals before 6 April 2019):
- Ìý
(a)ÌýÌýÌýÌý the company is the individual's personal company and is either a trading company or the holding company of a trading group, and
- Ìý
(b)ÌýÌýÌýÌý the individual is an officer or employee of the
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Web page updated on 17 Mar 2025 13:29