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Business Asset Disposal Relief (BADR)

Reduced 14% CGT on qualifying business sales, on lifetime disposals up to £1m.

Business Asset Disposal Relief (BADR) — formerly Entrepreneurs' Relief — reduces Capital Gains Tax to 14% on the sale of a qualifying business or shares (rising to 18% from April 2026). Lifetime cap: £1 million.

You must have owned at least 5% of voting shares and worked in the business for at least 2 years before disposal. The relief saves a higher-rate seller up to 10% of the gain.

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