Business asset disposal relief slashed
Business asset disposal relief (BADR) offers a reduced rate of Capital Gains Tax (CGT) when you sell a business; shares in your company; or qualifying business assets, subject to certain conditions.
For the tax years 2026-27 and 2027-28 eligible disposals benefit from a CGT rate of 18%.
For qualifying disposals made before 6 April 2027, BADR can be claimed on a maximum of £1m of eligible gains over an individual's lifetime. For a higher rate taxpayer this is worth up to £60,000 in saved tax. The lifetime limit will be halved to £500,000 for qualifying disposals made on or after 6 April 2027, reducing the maximum value of the relief to £30,000.
If you are planning to dispose of shares in your company or significant business assets in the next few months, it might be beneficial to expedite the disposal to make use of the current lifetime allowance before it is reduced. Contact us if you think this might be relevant to you.
