Tax Planning
Maximising Capital Gains Relief: Navigating the Business Asset Disposal Relief Changes
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) has changed from 6 April 2026—learn how the rate shift affects business exits, share sales, and planning opportunities under the new 18% regime.
By NomadicTax Research Team • 5-8 min read • June 5, 2026
## What’s Changed with Business Asset Disposal Relief (BADR)
From **6 April 2026**, the rate of Capital Gains Tax under Business Asset Disposal Relief on qualifying asset disposals **rises to 18%**. ([gov.uk](https://www.gov.uk/business-asset-disposal-relief?utm_source=openai))
- If you disposed between **6 April 2025 and 5 April 2026**, the rate remains at **14%**. ([gov.uk](https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2026?utm_source=openai))
- Disposals made **on or before 5 April 2025** enjoyed the 10% rate. ([gov.uk](https://www.gov.uk/business-asset-disposal-relief?utm_source=openai))
## Who’s Affected and When Planning Matters
- **Sole traders, partnerships, and shareholders** in “personal companies” are eligible.
- Conditions include owning the business for at least **2 years** before sale or disposal, or the business having ceased within a 3-year window in certain cases. ([gov.uk](https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2026?utm_source=openai))
If you're considerando selling now, getting contracts completed **before 6 April 2026** could lock in the 14% rate, subject to anti-forestalling rules. Contracts entered into before that date but completing later may still fall under 18%, unless they qualify as **“excluded contracts”** under those rules. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64174?utm_source=openai))
## Actionable Steps for Planning
1. **Review current planned disposals**: if possible, accelerate them to complete on or before 5 April 2026. If contracts are not yet in place, see if they can be started before the deadline.
2. **Ensure qualifying conditions are met**: two-year ownership, company qualifying as trading, minimum shareholding, etc.
3. **Check lifetime limit**: the lifetime gain eligible remains significant—ensure previous gains under BADR haven’t used up the limit. ([gov.uk](https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2026?utm_source=openai))
4. **Anti-forestalling documentation**: if relying on excluded contracts or special circumstances, ensure evidence is kept in case HMRC questions timing. The rules require commercial substance. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64174?utm_source=openai))
5. **Get professional valuations**: where asset disposals or share valuations are involved, formal valuations may support eligibility and timing.
## Planning Examples
- A business owner intending to sell her shares should aim to **exchange contracts by mid-March 2026** and complete by early April to hit the lower BADR rate (if all other conditions are satisfied).
- A partner in a trading business with substantial business asset values—if separating from the company after April, expect 18% rate unless disposing before the fiscal date.
## Implications • ODds Books and Risks
- **Higher CGT bills** on disposals after 6 April 2026; what once was 14% becomes 18%.
- **Valuation risk**: share dilution or company status changes could disqualify relief.
- **Lifetime relief limit**—once exceeded, excess gains taxed at standard CGT rates.
BADR remains a very powerful relief for entrepreneurs—but **these timing and qualifying tweaks make strategic planning essential** if you're considering disposing of business assets soon.