Glossary · UK
What is Business Asset Disposal Relief (BADR)?
A CGT relief reducing the rate on qualifying business disposals to 14% (from April 2025), subject to a £1 million lifetime limit.
Full Definition
Business Asset Disposal Relief (formerly Entrepreneurs Relief, renamed 2020) allows qualifying business owners to pay CGT at a reduced rate on gains from selling their business or shares in a personal company. The rate is 14% from 6 April 2025 (was 10% from 2020). It rises to 18% from April 2026. Qualifying conditions include: owning shares in a personal company for 2+ years with at least 5% stake, or trading as sole trader/partner for 2+ years. The lifetime limit of qualifying gains is £1 million.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.