Business Asset Disposal Relief calculator.
Work out the capital gains tax when you sell your business or shares in your company, with and without Business Asset Disposal Relief (BADR), formerly Entrepreneurs' Relief. It follows HMRC's method with the 2026 to 2027 rates: 18% on qualifying gains up to the £1 million lifetime limit. Free, no signup.
How Business Asset Disposal Relief works.
BADR taxes the gain on selling a business, or shares in your own trading company, at a lower rate, up to a lifetime limit. These are the rules the calculator follows, from HMRC's guidance on gov.uk.
The rate.
18% on qualifying gains for disposals from 6 April 2026, 14% from 6 April 2025 to 5 April 2026, and 10% before that. A sale's disposal date is normally the day an unconditional contract is exchanged, not completion. For contracts exchanged in 2025 to 2026 that completed on or after 6 April 2026, HMRC normally uses the completion date, so 18% applies.
The £1 million lifetime limit.
Every claim counts towards it, including claims made as Entrepreneurs' Relief. Any gain above what is left of the limit is an ordinary gain, taxed at 18% in what remains of your basic rate band and 24% above it. Each person has their own limit.
Who qualifies.
For shares, for at least 2 years up to the sale: you hold 5% of the shares and votes and are entitled to 5% of the profits and assets, or of the proceeds; you are a director, company secretary or employee; and the company is trading. EMI option shares need no 5% holding, but the option must be at least 2 years old. A sole trader or partner must have owned the business for 2 years, and if it has closed, sell its assets within 3 years. An asset you own and the business used for at least a year can qualify when sold with at least 5% of the shares or partnership.
How the tax is worked out.
Your taxable income is your income less the £12,570 personal allowance, which falls by £1 for every £2 of income over £100,000. Whatever is left of the £37,700 basic rate band is used first by the gains that qualify for the relief. The £3,000 annual exempt amount comes off the gains taxed at 24% first, then the rest.
What it is worth now.
With the BADR rate and the basic rate both at 18%, the relief saves 6% on qualifying gains that would otherwise be taxed at 24%: at most £60,000 on £1 million. In 2025 to 2026, at 14%, it saved up to 10%. A basic rate taxpayer whose gain fits inside the band saves nothing in 2026 to 2027.
Claiming and paying.
Claim on your Self Assessment return for the tax year of the sale. For a sale in 2026 to 2027 the tax is due by 31 January 2028 and the last day to claim the relief is 31 January 2029. A sale in 2025 to 2026 is due by 31 January 2027, with claims by 31 January 2028.
The tax is the last step of a sale. For the steps before it, from valuation to completion, read how to sell a business in the UK, and draft the paperwork with the NDA template builder and the heads of terms builder.
Frequently asked.
What is Business Asset Disposal Relief?
Business Asset Disposal Relief (BADR) lowers the capital gains tax when you sell all or part of your business, or shares in your own trading company. Qualifying gains are taxed at 18% for disposals from 6 April 2026, up to a lifetime limit of £1 million of gains. It was called Entrepreneurs' Relief until April 2020.
What is the BADR rate for 2026 to 2027?
18% for disposals on or after 6 April 2026. It was 14% from 6 April 2025 to 5 April 2026, and 10% before that. Gains above your lifetime limit are taxed at the normal capital gains tax rates: 18% in what is left of your basic rate band and 24% above it.
How much does BADR save now?
The BADR rate and the basic rate of capital gains tax are both 18%, so the relief only saves tax on gains that would otherwise be taxed at 24%. The most it can save is 6% of £1 million, which is £60,000, for a higher or additional rate taxpayer who has not used any of the limit.
Who qualifies for Business Asset Disposal Relief?
For shares, for at least 2 years up to the sale you must hold at least 5% of the shares and voting rights and be entitled to 5% of the profits and assets, or of the sale proceeds; be a director, company secretary or employee; and the company must be trading. EMI option shares have no 5% test, but the option must have been granted at least 2 years before the sale. A sole trader or partner must have owned the business for at least 2 years.
What is the BADR lifetime limit?
£1 million of gains, counted across every claim you make, including claims under Entrepreneurs' Relief. It was cut from £10 million for disposals on or after 11 March 2020. Each person has their own limit, so two shareholders who each meet the conditions can each claim on up to £1 million.
How do I claim BADR, and by when?
On your Self Assessment return for the tax year of the sale, or with Section A of the Business Asset Disposal Relief helpsheet. The deadline is the first anniversary of the 31 January after the tax year ends: 31 January 2029 for a sale in 2026 to 2027. The tax itself is due by 31 January 2028.
Can I claim BADR on a members' voluntary liquidation?
Often, yes. In a solvent liquidation the cash paid to shareholders is treated as a disposal of their shares, so the relief can apply if you met the conditions for the 2 years before the company stopped trading and the distribution is made within 3 years of that date. If you carry on a similar trade within 2 years and avoiding income tax was one of the main purposes, HMRC can tax the distribution as income instead.
Does a furnished holiday let still qualify for BADR?
Not for disposals from 6 April 2025, when the furnished holiday lettings tax regime was abolished. If the letting business stopped before that date and met the holiday let conditions, a disposal within 3 years of stopping can still qualify.
Is the calculator free, and is my data stored?
It is free, with no signup. The tax is worked out in your browser and the figures are kept in that browser so a refresh does not lose them. Nothing you type is sent to our servers.