Taxation of Chargeable Gains Act 1992 section 169N

Amount of relief: general

Section 169N sets out how to calculate the amount of Business Asset Disposal Relief (formerly Entrepreneurs' Relief) by netting relevant gains and losses, applying a reduced capital gains tax rate, and enforcing a lifetime limit.

• Relevant gains from a qualifying business disposal are aggregated, and relevant losses are deducted, to produce a single net chargeable gain treated as accruing at the time of the disposal.
• That net gain is taxed at a reduced rate of 14%, but only up to a cumulative lifetime limit of £1 million of qualifying gains (including gains from all earlier qualifying business disposals by the same individual or attributable to the same qualifying beneficiary).
• Any portion of the gain that exceeds the £1 million lifetime limit is taxed at the standard capital gains tax rates rather than the reduced 14% rate.
• Gains and losses already taken into account in the relief calculation are excluded from the general capital gains tax computation, so they are not double-counted as chargeable gains or allowable losses elsewhere.