Taxation of Chargeable Gains Act 1992 section 169H

Introduction

Section 169H introduces the framework for business asset disposal relief (formerly known as entrepreneurs' relief), which provides a lower rate of capital gains tax on qualifying business disposals, and signposts the remaining sections of the Chapter that set out the detailed rules.

• Business asset disposal relief applies a reduced rate of capital gains tax to gains arising on qualifying business disposals, which fall into three categories: material disposals of business assets, disposals of trust business assets, and disposals associated with a relevant material disposal.
• For certain qualifying business disposals, the relief is restricted so that it only applies to disposals of relevant business assets comprised within the qualifying business disposal, rather than to the disposal as a whole.
• The relief is not automatic — a formal claim must be made, and separate provisions govern how the amount of relief is calculated, including special rules for certain associated disposals.
• The Chapter also contains provisions dealing with share reorganisations and definitions of key terms used throughout, including what constitutes a trading company or trading group.