Business Asset Disposal Relief Eligibility

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.

Hi,

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.

@ 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.