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Business Asset Disposal Relief: How to Claim in The UK

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Simple Liquidation
Business Asset Disposal Relief: How to Claim in The UK

The directors or shareholders of a certain company who want to sell its assets in full or partially can take benefit of business asset disposal relief. Whenever a business sells its assets, it has to pay capital gains tax, and with the help of this relief, you can save significant fortunes which otherwise will end up in the state treasury. Your assets must qualify the process, and if they do, you can reduce your CGT to just 10%.

Do not confuse this relief with Entrepreneur’s reliefs, as they both are the same. Since 2020 it has been decided that now an individual can claim 10% CGT on a lifetime limit of £1million of capital gains. Any gains made of £1million or over will attract a CGT rate of the prevailing main rate (currently 20 % at 2019/2020 rates)

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