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Business asset disposal relief (which may also be referred to as BADR) is a capital gains tax (CGT) relief available to taxpayers who make a qualifying business disposal (essentially selling or giving away their business). Gains qualifying for business asset disposal relief are taxed at a flat rate of 10%. Relief is available on up to £1m of capital gains for each individual over their lifetime.

Prior to 6 April 2020, business asset disposal relief was known as entrepreneurs’ relief. Strictly, any reference to the relief before 6 April 2020 in the commentary below should use the term entrepreneurs’ relief, however to avoid confusion, the term business asset disposal relief has been used throughout.

Business asset disposal relief is a key relief in many business scenarios. To read about it in the context of some common types of transactions, see the following guidance notes:

1. •

   Rollover relief

2. •

   Business asset gift relief ― restrictions

3. •

   Capital gains tax implications of incorporation

4. •

   Tax implications of share sale

5. •

   Tax implications of