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Business asset disposals taxed at 10%

7 September 2023

Business Asset Disposal Relief (BADR), formerly Entrepreneurs' Relief, offers a 10% Capital Gains Tax rate for business sales or share transfers, with a lifetime limit of £1 million. Claim through self-assessment by specified deadlines.

Business Asset Disposal Relief (BADR) applies to the sale of a business, shares in a trading company or an individual’s interest in a trading partnership. Where this relief is available Capital Gains Tax (CGT) of 10% is payable in place of the standard rate. There are a number of qualifying conditions that must be met to benefit from this relief.

BADR used to be known as Entrepreneurs’ Relief before 6 April 2020. The name change did not affect the operation of the relief.

You can currently claim a total of £1 million in Business Asset Disposal Relief over your lifetime. The £1m lifetime limit means you can qualify for the relief more than once. The lifetime limit may be higher if you sold assets before 11 March 2020.

Claims for BADR are made via your self-assessment tax return or by filling in Section A of the Business Asset Disposal Relief help sheet.

The deadline for claiming Business Asset Disposal Relief is as follows:

Tax year when you sold or closed your businessDeadline to claim BADR
2021-2231 January 2024
2022-2331 January 2025
2023-2431 January 2026
Source: HM Revenue & Customs Tue, 05 Sep 2023 00:00:00 +0100

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