Business Asset Disposal Relief (previously known as Entrepreneurs’ Relief) is a valuable tax relief for individuals selling all or part of their business. If you qualify, you’ll pay 14% Capital Gains Tax (18% as of April 2026) on the first £1 million of qualifying lifetime gains.
That is instead of the standard 20% rate for higher-rate taxpayers. So for many business owners, this relief represents a significant saving on exit.
You can learn more about the different taxes that might apply when selling a business in our Tax Services section.
What’s Changing in 2026?
The government has not confirmed sweeping changes yet, but there are signs that BADR could be tightened in the coming year. Potential adjustments include:
- Reducing the £1 million lifetime limit
- Changing who qualifies, especially directors not involved day to day
- Tightening ownership and involvement criteria
- Removing the relief for certain share disposals
While nothing is set in stone, there is growing pressure to reform or restrict BADR. That means business owners looking to sell in the near future should consider planning now.
What Could This Mean for You?
If you are based in Kent and planning to sell your company in the next 12 to 24 months, it might be worth reviewing your plans sooner rather than later.
Waiting until after changes are announced could mean you miss out on tax relief you would otherwise qualify for. That might mean thousands of pounds lost unnecessarily.
Even if a sale is still a few years off, making sure your business structure and shareholder arrangements are fit for purpose now can avoid panic later.
Not sure where to start? Our Business Advisory team can walk you through your options.
Practical Steps to Take Now
Here are a few ways to make sure you are prepared for any changes to BADR:
1. Understand the Value of Your Business
Work with your accountant to assess the current market value of your company. If your potential gain is close to or over the £1 million limit, you may want to act before it’s reduced.
2. Review Shareholding and Eligibility
Make sure shares are held tax-efficiently, particularly across spouses or co-owners. Also check you meet the qualifying conditions for BADR, such as holding the shares for at least two years and being an officer of the company.
3. Start the Exit Conversation Early
If a sale is on the cards, even informally, start speaking to your accountant now. There may be strategic ways to structure a deal or time the transaction in your favour.
If you are not yet using a proactive adviser, we offer clarity calls to help you get a clearer view of your numbers and future plans.
What We’re Telling Our Clients
We are advising business owners in construction, property, and professional services across Kent to keep an eye on the Spring Budget. If further changes are confirmed, those who have planned early will have far more options.
One local business owner we work with brought forward their succession plans based on similar rule changes in the past and was able to lock in a 10% CGT rate. Had they waited, they could have paid double.
Final Thoughts
BADR is one of the most generous tax reliefs available to UK business owners, but it may not be around in its current form for long. If you are thinking about selling your business or stepping back in the next couple of years, now is the time to check where you stand.
At Brisan Accountancy, we’re here to help business owners across Kent make confident financial decisions with no fluff, no false promises, and no last-minute surprises.
You can explore our full range of tax planning and support services or get in touch directly for a no-obligation chat.
Need help reviewing your business structure or tax position ahead of potential rule changes? Contact the team and let’s make a plan that works for you.
