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30/04/2026

❓ FAQ of the Week: Selling shares in your own company. Can you claim BADR? 🏢💷

If you are selling shares in a personal or family company, Business Asset Disposal Relief can still be a big saver, but only if you tick the right boxes well before the sale.

💡 What does BADR do now?
For disposals from 6 April 2026, gains that qualify for BADR are taxed at 18%, subject to a £1 million lifetime limit per person. Spouses and civil partners each have their own lifetime limit.

✅ When do shares qualify?
BADR can apply to a sale of shares in your personal company, as long as the company is a trading company or the holding company of a trading group at the time of disposal. There is also a window to qualify if the company stopped trading recently, provided the disposal occurs within three years of cessation.

👤 What does “personal company” mean in practice?
You normally need at least 5% of the ordinary share capital and 5% of the voting rights. On top of that, you must also meet the economic test, meaning entitlement to at least 5% of distributable profits and assets on a winding up, or at least 5% of the sale proceeds.

⏳ How long do you need to meet the rules?
The conditions must generally be met throughout the two year qualifying period leading up to the disposal. You also need to be an officer or employee, such as a director, during that period.

🎁 What about gifting shares to family?
The article highlights that a gift of shares can sometimes qualify for BADR if Gift Hold Over Relief is not claimed, which can be useful in certain succession plans.

🧾 Do you need to claim it?
Yes. BADR is not automatic. It must be claimed, and there is a deadline to do so.

📌 Real world impact
In the article’s example, a shareholder with a £750,000 gain would pay £180,000 at 24% without BADR, versus £135,000 with BADR, a saving of £45,000.

🤝 How we can help
If you are planning a sale, retirement, management buyout, or family succession, we can review whether you qualify, spot any BADR risks early, and help you structure shareholdings, roles, and the timeline so you go into a deal with confidence.

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28/04/2026

This Week’s Tax Tip 🌟: Interest received and the savings rules people often mix up 💷🏦

Received bank or building society interest this year?

Many people know about the £1,000 allowance, but there is also a separate £5,000 starting rate for some taxpayers. Here is the difference, and when interest may need to be declared 👇

✅ The £1,000 Personal Savings Allowance

This is the allowance most people know about. Basic rate taxpayers can usually receive up to £1,000 of savings interest at 0%. Higher rate taxpayers get £500. Additional rate taxpayers get no Personal Savings Allowance.

✅ The £5,000 starting rate for savings

This is different. It is aimed at people with low non savings income. If your other income is less than £17,570, you may get up to £5,000 of savings interest taxed at 0%, and that band is reduced by £1 for every £1 your other income exceeds your Personal Allowance.

✅ These are separate reliefs

The £5,000 starting rate is for people with low other income. The £1,000 Personal Savings Allowance depends on your tax band. They are not the same thing.

✅ Do not forget the reporting point

If you complete a Self Assessment tax return, any interest earned on savings should be reported there. HMRC also says you need to register for Self Assessment if your income from savings and investments is over £10,000. If you are employed or receive a pension, HMRC may instead collect any tax due through your tax code.

23/04/2026

❓ FAQ of the Week: Who gets taxed on rental income when a couple owns the property together? 🏠💷

This catches a lot of landlords out, especially when one person earns more than the other or when rent lands in just one bank account.

👫 If you are married or in a civil partnership and living together
HMRC’s starting point is simple. Rental profits are taxed 50 50, even if you actually own the property in different shares. It’s a default rule, not a choice.

🚪 If you are no longer living together
The 50 50 rule can fall away where separation is likely to be permanent. At that point, HMRC looks at who is receiving or entitled to the profits in real terms. A recent tribunal case involved a jointly owned property rented via Airbnb, and the spouse who actually received and controlled the income was taxed on it, even though the income helped clear joint debts.

📄 Want the split to reflect unequal ownership while you are living together?
You generally need unequal beneficial interests as tenants in common, plus a valid Form 17 declaration to HMRC so the rental profits are taxed in line with the true ownership split. This needs to be backed up with evidence, and there is a strict submission window in practice, so timing matters.

✅ The key takeaway
You cannot fix this by simply paying the rent into the lower earner’s account. The legal ownership, the beneficial interest, and the reporting all need to match.

🤝 How we can help
We can review how your property is owned, confirm who should be taxed, advise on the right split, and handle the Form 17 process so everything is properly evidenced and reported correctly on your tax returns.

21/04/2026

This Week’s Tax Tip 🌟: Gifting property to children and the tax trap many families miss 🏠👨‍👩‍👧

Thinking of helping your children onto the property ladder by giving them a property?

The tax result can look very different depending on whether you gift an investment property or your main home. Here’s the key angle many families overlook 👇

✅ Gifting an investment property can trigger an immediate CGT bill

If you give a buy to let or investment property to your child, the transfer is normally treated as taking place at market value for capital gains tax purposes, even if no money changes hands. That can create a tax bill without any cash coming in to pay it.

✅ Gifting your main home can be much more tax-efficient

Where the property has qualified fully as your main residence, Principal Private Residence relief may mean there is no CGT to pay on the gift. For some families, that makes gifting the family home far more attractive than gifting an investment property.

✅ Do not forget the IHT rules

A lifetime gift is usually a potentially exempt transfer, so it can still fall back into your estate if you die within 7 years. And if you continue to benefit from the property after giving it away, the gifts with reservation rules can undo the planning.

Before gifting property to children, do not just think about who should receive it. Think carefully about which property you are giving and what tax cost comes with it.

16/04/2026

❓ FAQ of the Week: Does my company qualify for BADR, or could “non-trading” activities block the relief? 🧾🏢

BADR can still be valuable when you sell shares in your company, but one of the easiest ways to lose it is by failing the trading company test. For disposals from 6 April 2026, HMRC guidance notes that qualifying BADR gains are charged at 18%.

🔍 What does “trading company” actually mean?

In plain English, the company must be carrying on trading activities and must not have non-trading activities to a substantial extent. The same concept applies if you are selling shares in a holding company of a group, because the group needs to be trading overall.

⚠️ The word that catches people out is “substantial”

HMRC guidance often references a rough rule of thumb of around 20% when considering factors such as turnover, asset base, profits, and staff time, but case law has shown this is not a fixed mathematical test. It is a judgment call based on the facts.

🏠 Why property based income is a common danger zone

A recent tribunal case involving a business providing boat moorings and related services is a good reminder. The tribunal treated much of the income as arising from the exploitation of land rights, rather than from trading, and BADR was denied. The decision looked closely at what drove income and how the assets were actually used.

🧠 A quick way to sense check your risk

If a meaningful chunk of your company’s activity looks like investment style income, such as rent, licence fees, interest, surplus cash management, or owning assets that are not actively used in the trade, it is worth reviewing. HMRC and the tribunals will look at the substance of what the company actually does, not just how it describes itself.

👋 How we can help

If you are planning a sale, a share reorganisation, or just want to protect BADR for the future, we can review your trading status, identify any red flags, and help you tighten the structure and narrative before it becomes time critical.

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