CG63960 | Business Asset Disposal Relief: office responsible

Entrepreneurs’ Relief was renamed in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.

The office dealing with the tax affairs of a person claiming Business Asset Disposal Relief may need to consult other offices in the following circumstances -

• Where there is a disposal of shares it may be necessary to consider if the company in which the shares were held was a trading company or the holding company of a trading group - see CG64060+. The office that deals with the tax return of the company concerned is responsible for confirming whether the company is a trading company or the holding company of a trading group. A CTCG Specialist in Local Compliance (Large and Complex) or the Large Business Service CTCG Specialist should be consulted in cases of uncertainty.

• Where the question is whether a person has the requisite interest in the ordinary share capital and voting rights of a company to make it their ‘personal company’, see CG64050, the office that deals with the tax return of the company is similarly responsible for answering this question.

• Trustees may dispose of an asset other than shares, where qualifying status depends on the asset being used for the purposes of a trade carried by a qualifying beneficiary. That question should be addressed by the office that deals with the tax return of the business carried on by the qualifying beneficiary.

• Relief due on a disposal by trustees will count towards a qualifying beneficiary’s lifetime limit. The office dealing with the individual is responsible for confirming the amount of relief available within the lifetime limit.