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Posted Tue, 03 Jan 2023 08:21:34 GMT by Primrose99
Hi, can you please help with my question regarding capital gains tax/ Business Asset Disposal Relief? I closed my limited company via informal strike off in 2021-22. The company had traded for over 2 years and I was a sole director and employee for the company providing contracting services. My final capital gains distribution was under £25k. Am I eligible to claim Business Asset Disposal Relief for the capital gain even though I closed my company via informal strike off and not via members voluntary liquidation? I am not sure on the rules to be able to claim BADR if my capital distribution was under £25k and I closed via informal strike off. I believe I meet all the criteria of BADR, only I am unsure of the "disposal" aspect of the criteria if my company was struck off (and not liquidated). Thanks.
Posted Mon, 09 Jan 2023 11:52:46 GMT by HMRC Admin 32

If you have an eligible capital gain from the capital distribution you will pay 10% CGT after the AEA is deducted. Business Asset Disposal Relief is available, if the relevant conditions are satisfied, for capital distributions made in respect of shares disposed of as a result of the winding up of a company.  

CG64115 - Business Asset Disposal Relief: shares/securities: liquidation of company

Thank you.
Posted Thu, 23 Mar 2023 16:03:18 GMT by sarah jones salix
@ primrose99 did this answer your question? I have the same question and same circumstance. My business was for my own consultancy services. I stopped trading in March 2021. I now want to strike off the company and pay the residual in the business account to the two directors (myself and my husband). I think this would be subject to BADR only. I don't think there's a limit on BADR as we have £80k residual.

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