Taxation of Chargeable Gains Act 1992 Schedule A1 paragraph 5

Conditions for other assets to qualify as business assets

Paragraph 5 of Schedule A1 sets out the conditions that must be met for assets other than shares to qualify as business assets for the purposes of entrepreneurs' relief (now business asset disposal relief).

• An asset qualifies as a business asset if it is used in a business carried on by the individual, either as a sole trader or as a partner in a partnership, and the business ceases.
• The asset must have been used in the business for at least one year ending with the date the business ceased.
• The disposal of the asset must take place within three years of the date the business ceased.
• These conditions apply to assets used in a trade, profession, or vocation — they do not apply to shares or securities, which are dealt with under separate provisions.