Glossary · UK
What is Entrepreneurs' Relief (Historical)?
The former name of Business Asset Disposal Relief before it was renamed and reformed in the March 2020 Budget.
Full Definition
Entrepreneurs' Relief was a Capital Gains Tax relief that reduced the CGT rate to 10% on qualifying business disposals up to a lifetime limit of £10 million. It was introduced in the Finance Act 2008 to replace Business Asset Taper Relief. At the March 2020 Budget, Chancellor Rishi Sunak renamed it Business Asset Disposal Relief (BADR) and simultaneously reduced the lifetime limit from £10 million to £1 million with immediate effect. For 2026/27 the BADR rate is 18% following a further increase in the October 2024 Budget (raised from 10%). The qualifying conditions -- including a 5% minimum shareholding and 2-year ownership requirement -- remained largely unchanged through the renaming. The historical name may still be encountered in older documents, contracts, and share scheme rules.