Badr
Glossary
BADR
Business Asset Disposal Relief (BADR), previously called Entrepreneurs' Relief, is a UK Capital Gains Tax relief that reduces the CGT rate to 10% on the first £1 million of qualifying lifetime gains from selling all or part of a business.
To qualify, the seller generally needs to have held at least 5% of ordinary share capital and voting rights, have been an officer or employee of the company, and have held both for at least 24 months before disposal. The 10% rate is set to rise — 14% from 6 April 2025, 18% from 6 April 2026 — under the Autumn Budget 2024 reforms, but the £1 million lifetime limit remains. BADR remains the single biggest tax planning lever for owner-managers selling their business.
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