Joe Brough examines the qualifying criteria under the ‘associated disposals’ and when business asset disposal relief may be restricted.
When selling their business, an individual may also sell personally hold assets used by it. In some circumstances, these assets may qualify for business asset disposal relief (BADR) in full or part, under the ‘associated disposals’ rules.
Starting point
Before an associated disposal can qualify for BADR, there must be a qualifying material disposal of an interest in a trading partnership or shares in a personal trading company. In relation to this disposal, there is a minimum disposal threshold, which must be met.
For a partnership, this must be of at least a 5% interest in the partnership assets. If the interest is less than 5%, the disposal will still qualify if the entire holding is
