TAX TIP OF THE WEEK - BADR relief scheme

You have made a healthy capital gain from the sale of assets when your business has closed. The problem is its going to take time to sell the property which could effect the tax relief.

When you sell your business HMRC will want a chunk of any gains in the form of CGT. 😩

Good news is that you can claim BADR (formerly known as entrepreneurs relief) which means the tax rate is reduced to 10% 💪 .

Bad news is that if will take time to sell the property you could miss out on the tax relief unless the following conditions are met:
🏗️The business has carried on for at least 2 years
🏪The property was used for the business at the time it ceased trading
🏷️It is sold within 3 years of the sale of the business.

With this in mind, it is worth ensuring the trading of your business is dragged out for at least 2 years even if it is making a loss and ensure and property associated with the business is sold within 3 years.

I hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist.