CG17929 - Taper relief: business asset: introduction

A chargeable gain on the disposal of an asset qualifies wholly for the business asset taper if the asset is a business asset of the person making the disposal throughout the relevant period of ownership, see CG17925, and was not, at any time in that period, also put to non- business use, see CG17958. There are separate business asset tests for shares and securities, see CG17930, and for other assets, see CG17936. If an asset has been a business asset for part only of the relevant period of ownership, the gain is divided into two gains for the purpose of taper relief by reference to the respective periods of business and non-business use. Taper relief is given at the business rate by reference to the qualifying holding period on the business gain, and at the non-business rate on the non-business gain. If a part of the asset is not a business asset there is a further restriction on the proportion of the gain that attracts business asset taper, see CG17958.

There are different rules for deciding if an asset is or is not a business asset applying from 6 April 1998, 6 April 2000 and 6 April 2004. Where an asset becomes a business asset, see CG17929+, from 6 April 2000 or 6 April 2004 because of changes in the rules, you may need to apportion the gain for periods when the asset was and was not a business asset, see CG17955+.