Answers · UK 2025/26
What is Entrepreneurs Relief called now?
Entrepreneurs Relief was renamed Business Asset Disposal Relief (BADR) in April 2020. As of 2026/27, BADR gives a reduced 18% CGT rate on qualifying business asset disposals, up to a lifetime limit of £1 million. The rate increased to 14% from April 2025 and to 18% from April 2026.
Full answer
**Entrepreneurs Relief** was renamed **Business Asset Disposal Relief (BADR)** in the Finance Act 2020, effective from 6 April 2020. The underlying mechanics remain similar, but the CGT rate has been increased significantly since then. **BADR rates timeline:** | Period | BADR rate | |---|---| | Before 11 March 2020 | 10% | | 11 March 2020 – 5 April 2025 | 10% | | 6 April 2025 – 5 April 2026 | **14%** | | From 6 April 2026 (2026/27) | **18%** | **Standard CGT rates (2026/27):** 18% (basic rate) and 24% (higher rate) on residential property; 18% and 24% on other assets. **From April 2026, the BADR rate matches the basic-rate CGT rate (18%)** — meaning BADR only provides a saving for higher-rate taxpayers (24% vs 18%). **Qualifying conditions for BADR:** All of the following must be met for **at least 2 years** before disposal: 1. You own at least **5% of the ordinary share capital** and voting rights in the company 2. You are an **employee or officer** (director) of the company 3. You are entitled to at least **5% of distributable profits** and assets on winding up **For sole traders and partnerships:** - You must have owned the business for at least 2 years - The disposal must be of the entire business or part of it as a going concern **Lifetime limit:** £1,000,000 (unchanged since March 2020, having been cut from £10,000,000) **Investors Relief:** A separate relief — **Investors Relief** — applies to external investors (not employees) in unlisted trading companies. From 6 April 2026, the Investors Relief rate also increases to 18%, with a separate £1,000,000 lifetime limit.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.