If you’re planning to sell your business or shares, it’s important to understand the tax reliefs that could help reduce your bill and make the most of what you’ve built. At Dunkley’s Accountants in Bristol, we regularly support clients with practical, jargon-free tax advice to navigate these kinds of decisions confidently.
Let’s take a quick look at two key reliefs: Business Asset Disposal Relief (BADR) and the Substantial Shareholding Exemption (SSE).
What Is Business Asset Disposal Relief?
Formerly known as Entrepreneurs’ Relief, BADR allows individuals to pay just 10% Capital Gains Tax on qualifying business sales – up to a £1 million lifetime limit.
To qualify, you’ll usually need to:
- Be a business owner or shareholder with at least 5% of the company
- Have held your shares or business for two years
- Be an employee or officeholder if you’re selling shares
This relief is especially useful when stepping back from a business you’ve worked hard to grow.
What Is the Substantial Shareholding Exemption?
SSE is designed for companies (not individuals) that are selling shares in another company. If the right conditions are met, the gain can be completely exempt from Corporation Tax – a big win for larger businesses and group restructures.
To qualify, your company must usually:
- Hold at least 10% of the shares for 12 months
- Be a trading company or part of a trading group
- Be selling shares in another trading company
Let’s Talk About What Works for You
Whether you’re selling a business, restructuring, or just planning ahead, it pays to have expert guidance. At Dunkley’s Accountants, we offer clear, reliable tax advice tailored to your goals – right here in Bristol.
If you’re considering selling your business or shares, we can help you understand the reliefs available and structure your disposal efficiently. Talk to us.