What qualifies for BADR?

BADR applies to disposal of: (1) a whole or part of a sole-trader/partnership business held for 2+ years, (2) shares in a trading company where you hold 5%+ of shares and voting rights and are an officer/employee, held for 2+ years, (3) associated business assets disposed within 3 years of business cessation.

What happened to the 10% rate?

The BADR rate was 10% until April 2025, increased to 14% for 2025-26, and to 18% from April 2026 (Finance Act 2024). The lifetime limit remains at GBP 1,000,000.

What is the BADR rate from April 2026?

BADR gains are taxed at 18% from 6 April 2026, matching the main CGT basic rate, subject to the GBP 1 million lifetime limit (TCGA 1992 s.169N(3)).

UK Business Asset Disposal Relief Calculator

Calculate CGT with Business Asset Disposal Relief (formerly Entrepreneurs' Relief)

Business Asset Disposal Relief (BADR) reduces the CGT rate to 18% on qualifying business disposals, up to a lifetime limit of GBP 1,000,000. It applies to disposals of businesses, shares in trading companies (with 5%+ holding for 2+ years), and business assets.

Frequently Asked Questions

What qualifies for BADR?+
What happened to the 10% rate?+
What is the BADR rate from April 2026?+