Business Asset Disposal Relief (BADR): complete guide for 2026

What is Business Asset Disposal Relief?Business Asset Disposal Relief (BADR), previously called Entrepreneurs’ Relief, is a capital gains tax (CGT) relief intended to incentivise individuals to grow and invest in their businesses. It provides significant tax savings for higher and additional rate taxpayers.

How BADR reduces capital gains tax
Despite reductions in its benefits, BADR still offers valuable tax breaks to business owners. It reduces the rate of CGT on qualifying gains from the disposal of business assets, compared to the standard CGT rate. The relief is capped at a £1 million lifetime limit on gains. The maximum potential savings are as follows: