Glossary · UK
What is BADR (Business Asset Disposal Relief)?
Reduced CGT rate on qualifying business sales — 14% in 2025/26, rising to 18% from April 2026.
Full Definition
Business Asset Disposal Relief (BADR, formerly Entrepreneurs' Relief) lets owners pay a reduced rate of Capital Gains Tax when they sell all or part of a qualifying trading business, shares in their personal company (5%+ holding), or associated business assets. The rate is 10% on gains up to a £1 million lifetime limit until 5 April 2025, then 14% for 2025/26 and 18% from 6 April 2026. Conditions: you must have owned the business or 5% of shares + voting rights for at least 2 years and been an officer or employee. Claim via Self Assessment within 12 months of the 31 January following the disposal. Often combined with retirement planning.