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Calculating business asset disposal relief (BADR)

Where a claim is made for BADR (previously known as entrepreneurs' relief before April 2020) in respect of a qualifying business disposal the gain treated as accruing, known as the TCGA 1992, s 169N(1) gain, is calculated by aggregating relevant gains and aggregating relevant losses (if applicable), and subtracting the losses from the gains¹. HMRC does not consider that aggregation applies to shares and securities of one company that are disposed of in separate transactions, such as over different tax years. If a sole trader disposes of all business assets at a gain, except a long lease on the premises which he sells to a third party at a loss, HMRC would consider that the sale of the lease is still comprised in the qualifying business disposal, and it could therefore be aggregated. It will depend on the facts of the case².

Relevant gains means, in the case of a disposal of shares or securities,