Section 169I — Finance Act 2008: Material disposal of business assets

Material disposal of business assets 169I 1 There is a material disposal of business assets where—

a an individual makes a disposal of business assets (see subsection (2)),

and b the disposal of business assets is a material disposal (see subsections (3) to (7)).

2 For the purposes of this Chapter a disposal of business assets is—

a a disposal of the whole or part of a business, b a disposal of (or of interests in) one or more assets in use, at the time at which a business ceases to be carried on, for the purposes of the business, or c a disposal of one or more assets consisting of (or of interests in) shares in or securities of a company.

3 A disposal within paragraph (a) of subsection (2) is a material disposal if the business is owned by the individual throughout the period of 1 year ending with the date of the disposal.

4 A disposal within paragraph (b) of that subsection is a material disposal if—

a the business is owned by the individual throughout the period of 1 year ending with the date on which the business ceases to be carried on, and b that date is within the period of 3 years ending with the date of the disposal.

5 A disposal within paragraph (c) of subsection (2) is a material disposal if condition A or B is met.

6 Condition A is that, throughout the period of 1 year ending with the date of the disposal—

a the company is the individual's personal company and is either a trading company or the holding company of a trading group, and b the individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group.

7 Condition B is that the conditions in paragraphs (a) and (b) of subsection (6) are met throughout the period of 1 year ending with the date on which the company—

a ceases to be a trading company without continuing to be or becoming a member of a trading group, or b ceases to be a member of a trading group without continuing to be or becoming a trading company, and that date is within the period of 3 years ending with the date of the disposal.

8 For the purposes of this section—

a an individual who disposes of (or of interests in) assets used for the purposes of a business carried on by the individual on entering into a partnership which is to carry on the business is to be treated as disposing of a part of the business, b the disposal by an individual of the whole or part of the individual's interest in the assets of a partnership is to be treated as a disposal by the individual of the whole or part of the business carried on by the partnership, and c at any time when a business is carried on by a partnership, the business is to be treated as owned by each individual who is at that time a member of the partnership.