Business Asset Disposal Relief 2026/27
rates verified 24 Jul 2026 · next refresh after Autumn Statement
Direct answer
BADR rate is 18% from 6 April 2026, up from 14% in 2025/26 (which was up from 10% on 6 April 2025). The £1 million lifetime limit on qualifying gains remains931.
BADR rate timeline
PeriodFromRateChangeNotes
Pre-6 Apr 20256 Apr 200810% – Entrepreneurs' Relief / BADR
6 Apr 2025 – 5 Apr 20266 Apr 202514%+4ppAutumn Budget 2024
From 6 Apr 20266 Apr 202618%+4ppAligns with main CGT lower rate
Who qualifies
- Sole traders and partners disposing of all or part of a business.
- Company directors and employees with at least 5% of ordinary shares and voting rights, holding for at least two years.
- Trustees disposing of trust assets where a beneficiary qualifies in their own right.
BADR vs standard CGT
For a higher-rate payer on a £500,000 qualifying gain, BADR at 18% costs £89,460 (after the £3,000 allowance). Standard CGT at 24% on the same gain would be £119,280, so BADR saves £29,820. The gap was wider when BADR was 10%.