Selling your business? Business Asset Disposal Relief is now 18%
Capital gains tax on qualifying business disposals went up from 14% to 18% on 6 April 2026. The £1 million lifetime limit is unchanged.
Business Asset Disposal Relief (previously Entrepreneurs' Relief) lowers the capital gains tax when you sell all or part of your business or your shares in a trading company.
What changed
- Disposals on or after 6 April 2026: 18%
- Disposals between 6 April 2025 and 5 April 2026: 14%
- Lifetime limit: £1 million of qualifying gains
The 18% rate is still below the main higher rate of capital gains tax (24%), so the relief remains valuable.
Claiming the relief
The relief isn't automatic. You must claim it by the first anniversary of 31 January after the end of the tax year in which you sell. For a sale in 2026/27, that is 31 January 2029.
Before you sell
The conditions about how long you've owned the business or shares, and your role in the company, are strict. Talk to us before agreeing a sale, so the deal is structured to qualify.