Business asset disposal relief (BADR) services
Helping business owners maximise value and plan tax-efficient exits
Business Asset Disposal Relief (BADR) remains one of the most valuable tax incentives available to entrepreneurs, yet recent rate increases and further planned rises mean the window for maximising relief is narrowing. For many business owners, these changes are prompting a reassessment of their exit timelines, with more choosing to bring forward succession, retirement, or sale plans.
Our specialists help you navigate the evolving BADR landscape so you can secure value, reduce tax exposure, and exit on your terms.
What is BADR – and why does it matter?
BADR allows qualifying business owners to pay a reduced rate of Capital Gains Tax (CGT) on the disposal of all or part of their business.
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Current BADR rate (from 6 April 2025): 14%
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Standard CGT rate: 24%
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Planned BADR increase (from April 2026): 18%
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Lifetime BADR limit: £1 million of qualifying gains
Historically set at 10%, the steady rise in rates is reshaping how business owners plan their exits. Securing BADR can make a substantial difference to the tax paid when selling a business or stepping back from ownership.
Why recent BADR changes are prompting early exits
A shrinking window of opportunity
The increase from 10% to 14%, with a further rise to 18% scheduled, means owners could face significantly higher tax bills by delaying disposals.
Concerns about future restrictions
With ongoing fiscal pressures, many fear BADR could be tightened further or potentially withdrawn. Selling sooner allows owners to “bank” the relief while it remains available.
Portfolio diversification
Owners with most of their wealth tied up in the business are increasingly choosing to realise value early and diversify risk across a broader investment portfolio.
Accelerated retirement and succession
Shifting BADR thresholds are driving owners to bring forward retirement or succession planning to secure relief for themselves and future generations.
Not about distress — it’s about strategy
This trend isn’t driven by business distress; it’s driven by strategic tax planning. Owners want certainty, control, and the ability to secure relief at 14% while it is still available.
Whether through a business sale, restructuring, or staged exit, early planning delivers flexibility and ensures tax decisions support your long-term objectives.
Our BADR Services
Our dedicated business tax team helps entrepreneurs and business owners understand, protect, and maximise BADR. We provide:
Strategic BADR planning
Identify whether you qualify, assess future eligibility risks, and plan around legislative changes.
Exit scenario modelling
See the tax impact of selling now versus later clarity that supports confident decision-making.
Structuring business disposals
Tax-efficient design of share sales, trade sales, management buyouts, group reorganisations, and partial exits.
Wealth protection and tax minimisation
Ensure proceeds are structured to protect your wealth and reduce unnecessary tax exposure.
Succession and retirement planning
Support for owners seeking to pass on value efficiently and plan smooth leadership transitions.
Thinking of exiting your business?
With BADR rates rising and future changes uncertain, early planning is more important than ever. Whether you’re actively considering a sale or simply reviewing your options, our team can help you build a clear, practical exit plan tailored to your personal and commercial goals.
Speak to our business tax specialists
Take advantage of the 14% BADR window before April 2026.Contact our business tax team today to discuss your exit plans and secure the relief you’re entitled to.