BADR questions

3Dwarves

Hello,

Turning to forumites for some guidance on a bit of a tricky tax return this year.

There is something I don't understand about how BADR (Business Asset Disposal Relief) and self assessment work together.

When I file the self assessment (deadline by end of January 2024) and I declare proceeds from sale of company which happened that tax year, do I pay CGT on them at 20% by January 31, 2024?

Then, I claim BADR separately, for which the deadline is end of January 2025, one year later, and then I get 10% refunded on what I already paid?

Can I file tax return with the capitals gains by the end of January 2024, but pay no tax on them this year, because the deadline is effectively 2025 to claim the BADR? Can I for example not declare the proceeds of this sale this year and instead declare them by end of January 2025 together with the Business Asset Disposal Relief?

Finally, is it possible to file the tax return and claim BADR by end of January 2024 and pay only 10% tax on the proceeds? 

Also, who should I contact for more help, please?

Thank you!

[Deleted User]

The capital gain, and any reliefs available, must be declared on the return pertaining to the tax year when the disposal took place. 

You state that it happened ‘that tax year’. What tax year? When was the actual date of sale?

https://www.gov.uk/business-asset-disposal-relief/how-to-claim

3Dwarves

Thank you, all, that was very helpful. 

3Dwarves

One last question please about BADR lifetime allowance, that is confusing me. 
In the relevant section in the tax return, the box to be filled in, asks:

Lifetime allowance of Business Asset Disposal Relief and Enterpreneur's Relief *claimed* to date

and in the help section under it, it says:

If a claim is being made for this year, then the amount to include in this box is the total claimed for gains in this and in any previous year. The amount entered in this box must not exceed £1 million.

What confuses me is this. When they say the total claimed - do they mean the total gains and not the 10% BADR that is claimed for the corresponding claims?

Basically, I have the total gains, and in this specific box, which asks for Lifetime allowance of Business Asset Disposal Relief and Enterpreneur's Relief *claimed* to date, do I include all the gains on which I have claimed BADR, or do I include the 10% of the total gains, because that is my BADR *claim*, as I understand it?

Because the amount *must not exceed £1 million*, I am thinking they want me to include the gains on which I am claiming BADR.

It's very confusing to even explain it. 

3Dwarves

I am confused because they say input *total claimed* and I understand that *claimed* stands for the relief claimed, which stands at 10% of the gains. 
But because they say the amount can't be more than £1 million, I am inclined to think that they intended to say the total amount of gains on which BARD has been claimed, effectively asking me to add from this and previous years the amount of gains. 
Alternatively I imagine they want me to include there the relief I have claimed via BADR, but this sounds wrong.