📢 Business owners and investors should be aware of important changes to Business Asset Disposal Relief (BADR) which came into effect from 6 April 2026. 

The Capital Gains Tax (CGT) rate applying to qualifying BADR disposals has increased from 14% to 18%, reducing the level of tax relief available when selling a business or qualifying shares. 

BADR continues to offer a reduced rate of CGT on qualifying disposals, including: 
✔️ The sale of a business 
✔️ Shares in a trading company 
✔️ An individual’s interest in a trading partnership 

While the lifetime BADR allowance remains at £1 million, meaning the relief can still be claimed multiple times up to this threshold, the increased tax rate means business owners may now face a higher tax bill when disposing of qualifying assets. 

⚠️ New anti-forestalling rules have also been introduced to prevent individuals from locking in the previous lower rate through early contracts. In many cases, where an unconditional contract was entered into during the 2025/26 tax year but completion takes place on or after 6 April 2026, the disposal will now be treated as occurring at completion – meaning the new 18% rate applies. 

There are some exceptions for “excluded contracts”, particularly where arrangements were made for genuine commercial reasons rather than to secure a tax advantage. In certain cases, gains of up to £100,000 may still fall outside the anti-forestalling rules. 

Investors’ Relief rates have also increased in line with BADR, rising to 18% from April 2026. 📈 

🔍 The Perrigo Perspective 
For many business owners, succession planning and business sales are long-term decisions that require careful preparation. These latest changes highlight the importance of seeking professional advice early, particularly where contracts, share disposals or restructuring plans are already being considered. 

Understanding the timing of a disposal could make a significant difference to your overall tax position. 

📞 Need advice on a business sale or disposal? 
If you are considering selling your business, restructuring, or disposing of shares, our team at Perrigo Consultants Limited can help you understand how these changes may affect you and identify the most tax-efficient approach. 

Please contact us to arrange a confidential discussion with one of our advisers. 

Internet Link – HS275 Business Asset Disposal Relief (2026) – GOV.UK