Maximising business asset disposal relief

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

This guidance note considers some practical and planning points relating to business asset disposal relief (BADR). For guidance on the calculation of and qualifying conditions for BADR, see the Conditions for business assets disposal relief guidance note.

It should be noted that at the Autumn Budget 2024 it was announced that the rate of BADR will increase to 14% for disposals made on or after 6 April 2025, and from 14% to 18% for disposals made on or after 6 April 2026.  It was also announced at the Budget that the main rates of CGT will increase from 10% to 18% (basic rate) and 20% to 24% (higher rate) for disposals on or after 30 October 2024. Therefore from April 2026, the BADR rate will match the basic rate of CGT.

Spouses’ shares

Spouses and civil partners (hereafter ‘spouse’) are often involved in the running and ownership of owner-managed businesses. This offers a number of benefits with regards to tax planning, in particular making the use of two individuals’ entitlement to allowances and entitlement to reliefs

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