ExpertEasy2 marksMultiple Choice
ACCA · Question 15 · Chargeable gains for individuals
Section A: Objective Test
To qualify for Business Asset Disposal Relief (BADR) on the disposal of shares in a personal company, an individual must meet certain conditions. For how long must these conditions be met immediately prior to the date of disposal?
Section A: Objective Test
To qualify for Business Asset Disposal Relief (BADR) on the disposal of shares in a personal company, an individual must meet certain conditions. For how long must these conditions be met immediately prior to the date of disposal?
Answer options:
A.
1 year
B.
2 years
C.
3 years
D.
5 years
How to approach this question
Recall the qualifying period for Business Asset Disposal Relief (formerly Entrepreneurs' Relief). The conditions (holding at least 5% of shares/voting rights and being an officer/employee) must be met for a continuous period leading up to the disposal.
Full Answer
B.2 years✓ Correct
To qualify for Business Asset Disposal Relief (BADR) on the disposal of shares, the company must be the individual's personal company (holding at least 5% of ordinary share capital and voting rights), it must be a trading company, and the individual must be an officer or employee. These conditions must be met for a continuous period of 2 years immediately prior to the disposal.
Common mistakes
Selecting 1 year, which is the old rule.
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