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Business Asset Disposal Relief, formerly known as Entrepreneurs鈥� Relief聽(TCGA92/S169H to S169V) was introduced to complement the flat rate for capital gains tax that applies to disposals taking place on or after 6 April 2008. From that date, disposals no longer attract indexation or taper relief.

This relief has the effect of charging certain gains at a lower rate of tax than the flat rate. The main conditions reflect similarities with those for retirement relief although with significant simplifications.

Gains arising on or associated with the disposal of the whole or part of a business may qualify, as may certain disposals of shares or securities, but not those held in Funds at Lloyd鈥檚. These are not 鈥榬elevant business assets鈥� under TCGA92/S169L, being excluded assets under subsection (4). Detailed guidance is at CG64005.

For disposals from 6 April 2008 to 22 June 2010 gains that qualify for relief are reduced by 4/9ths.聽

For disposals from 23 June 2010 to 5 April 2025 gains which qualify for relief are charged to capital gains tax at a聽rate of 10 per cent.

For disposals occurring on or after 6 April 2025 gains which qualify for relief are charged at a rate of 14 per cent. This increases to 18 per cent for gains arising from disposals occurring on or after 6 April 2026. Finance Act 2025 includes anti-forestalling rules to counter arrangements that seek to 鈥渓ock in鈥� lower CGT rates, see CG10249 to CG10251.

The amount of gains that may qualify for the relief is subject to a lifetime limit聽which is聽拢10,000,000 for disposals made on or after 1 April 2011. 聽

Reducing a member鈥檚 syndicate capacity, including where this is done by reducing the number of syndicate participations within a member鈥檚 spread, is not likely to amount to the disposal of part of the underwriting business. It is instead聽more likely to be a disposal of an asset.