Making a claim for Business Asset Disposal Relief (BADR) involves specific processes, primarily through your tax filing methods, allowing you to reduce the Capital Gains Tax on certain business disposals.
Primary Methods for Claiming Business Asset Disposal Relief
There are two main ways to claim Business Asset Disposal Relief:
1. Via Your Self Assessment Tax Return
You can make your claim for Business Asset Disposal Relief directly when completing your annual Self Assessment tax return. This method integrates the claim process into your regular tax filing, requiring you to include details of the disposal and the relief claimed within the relevant sections of the return. This is often the most straightforward approach for individuals already required to file a Self Assessment tax return.
2. Using the Business Asset Disposal Relief Helpsheet
Alternatively, you can claim BADR by completing Section A of the dedicated Business Asset Disposal Relief helpsheet. This helpsheet is specifically designed to guide you through the process of calculating and claiming the relief. It provides a structured format to detail the disposal and the amount of relief you are claiming. This method can be particularly useful if you need specific guidance or if your claim involves more complex calculations.
For clarity, here's a summary of the two methods:
| Method | Description |
|---|---|
| Self Assessment Tax Return | Include the claim directly within the relevant sections when you file your annual Self Assessment tax return. |
| Business Asset Disposal Relief Helpsheet | Complete Section A of the specific helpsheet designed for claiming this relief, providing a structured format for your disposal details. |
