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Business asset disposal relief

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Business asset disposal relief

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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Business asset disposal relief (which may also be referred to as BADR) is a capital gains tax (CGT) relief available to taxpayers who make a qualifying business disposal (essentially selling or giving away their business). Gains qualifying for business asset disposal relief are taxed at a flat rate. Relief is available on up to £1m of capital gains for each individual over their lifetime.

For disposals between 23 June 2010 and 5 April 2025, qualifying gains were taxed at a flat rate of 10%. Disposals made between 6 April 2025 and 5 April 2026 are taxed at 14% and disposals made on or after 6 April 2026 are taxed at 18%. These rate changes are subject to anti-forestalling provisions. See ‘Rate of CGT on qualifying gains’ below.

Business asset disposal relief is a key relief in many business scenarios. To read about it in the context of some common types of transactions, see the following guidance notes:

  1. •

    Rollover relief

  2. •

    Business asset gift relief ― restrictions

  3. •

    Capital gains tax implications of incorporation

  4. •

    Tax implications

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  • 24 Mar 2025 13:21

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