Last modified 07:49, 24 Apr 2017

Overview

The Business Assets window should be used to advise the system of the dates an asset qualified as a Business Asset. The system can handle complex scenarios whereby the status of an asset changes many times during the holding period.

Qualify as Business Asset

Use  the Business Assets window to advise the system the date the asset first qualified as a Business Asset and thereafter any change in status.

The earliest date that an asset can qualify as a Business Asset is April 6 1998 although the system will calculate, with reference to the date of acquisition, whether a holding qualifies for the tapering bonus year.

Post April 5 2000 disposals of Unquoted Securities will be treated automatically as Business Assets. However if the holding was acquired prior to April 6 2000 then the prior period will be treated as non qualifying although the default treatment can be overridden if required.

When an asset is subsequently sold the system will flag the disposal as a Business or Non-Business Asset and detail the relevant taper rate. Additionally, on disposal of a mixed-use asset the system will apportion automatically the capital gain into its separate Business and Non-Business elements.

Note

If for some reason, such as a reorganisation, a Company changes its Security code then the Business Asset details need to be changed to reflect the new Security code.

Alternative Investment Market (AIM)

The system will treat UK based AIM securities as ranking for Business Asset status for periods starting on or after April 6th 2000. However there are a number of reasons why an AIM security might not rank as a Business Asset and these include:

  • The Company is not actively involved in a trade.

  • The Company has shares quoted elsewhere on a recognised stock exchange.

  • The Company was previously quoted on a recognised stock exchange.

If any of the above scenarios apply, and the system has calculated a gain on a disposal, then a manual override, using the Business Asset screen, will be required.

 

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