Readers Forum: Business asset disposal relief

My client owns a business which he runs through a limited company. Shareholder reserves are in the negative due to historical losses. The business uses land and buildings owned by the director.

He has received an offer of more than £2m for this land. We are looking at business asset disposal relief (BADR) in relation to the business and the land. The company meets the qualifying criteria so we do not see any issues on the shares being eligible for relief. Rather than wind up the company it has been suggested that the shares are transferred to our client’s adult son.

We have not valued the company but would expect that it is negligible. However if there is some value in the shares we were wondering whether the disposal of the land as an associated disposal of the company shares would continue to attract BADR if...