Taxation of Chargeable Gains Act 1992 Schedule 7ZA paragraph 25

Meaning of "relevant period"

Paragraph 25 of Schedule 7ZA defines the "relevant period" used in various conditions for Business Asset Disposal Relief (formerly Entrepreneurs' Relief), specifying the qualifying timeframes that must be met depending on the type of disposal involved.

• For direct disposals of business assets (conditions A and C), the relevant period is the 2 years ending on the date of the disposal itself.
• For disposals linked to the cessation of a business (conditions B and D), the relevant period is the 2 years ending on the specific date referenced in those conditions, such as the date the business ceased.
• For disposals of trust business assets, the relevant period is a 2-year window that must end no earlier than 3 years before the date of the disposal.
• The definition ensures that qualifying conditions must be satisfied throughout a continuous 2-year period, though the exact end date of that period varies according to the circumstances of the disposal.