What is Business Asset Disposal Relief and what rate does it give me now?
I've heard this used to be called Entrepreneurs' Relief and gave a much lower tax rate on selling a business — is that still the case?
Asked by Anonymous on 9 May 2026
1 Answer
Business Asset Disposal Relief (the renamed Entrepreneurs' Relief) applies a reduced Capital Gains Tax rate to qualifying disposals of a trading business or shares in your personal trading company, up to a lifetime limit of £1 million of gains. The rate has been rising in stages from the old 10% following recent Budget changes, and by April 2026 it aligned with a rate of 18%, so the gap between BADR and the standard higher CGT rate has narrowed considerably. Given the qualifying conditions (ownership percentage, employment status, holding period) and the fact rates have changed year on year, it's important to get current, personalised advice from an accountant before relying on this relief.