Business Asset Disposal Relief

It reduces the rate of CGT payable on qualifying disposals to 14%. An individual may claim BADR up to £1m of qualifying capital gains – this is a lifetime limit. 

There’s no limit to how many times you can claim Business Asset Disposal Relief. However, under current legislation, you can claim a total of £1 million in BADR over your lifetime. Please contact us for more information.  

You must meet the ‘personal company’ test for at least 2 years before you dispose of your shares. The test will effectively need to confirm that you owned at least 5% of the shares and voting rights in the two years prior to the disposal. 

There are three types of ‘business asset‘ which may qualify for relief. They are: Whole or part of a sole trade or partnership business. An asset used in a business at the time the business ceases to be carried on. Shares or securities (for example loan stock) in a company. 

It’s important to consider that the main requirement for the relief isn’t merely the sale of business assets.  

Additional requirements: 

• Part or whole sale of a business that had been owned through the two-year period leading up to the date of disposal, or 
• The disposal of businesses assets within three years after the sale of a business that had been owned through the two-year period leading up to the date of disposal, or 
• The disposal of an asset used by a partnership or company where the disposal is associated with a disposal of partnership assets or company shares which too qualifies for BADR, or 
• Share are required to have been held for a minimum of 24 months before BADR can be claimed on their disposal 

• If you’re selling all or part of your business 
• If you’re selling shares or securities  
• If you’re selling assets you lent to the business 
• If you’re a trustee selling assets held in the trust 

Contact us to discuss your situation. 

(Assuming annual exempt amount has already been used) 

(This is for disposals made between 6 April 2025 to 5 April 2026)