CG63955 | Business Asset Disposal Relief: broad outline

Entrepreneurs’ Relief was renamed as Business Asset Disposal Relief in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.

For disposals occurring on or after 6 April 2025 gains which qualify for Business Asset Disposal Relief are charged at a rate of 14%. This increases to 18% for qualifying gains arising from disposals occurring on or after 6 April 2026. Finance Act 2025 includes anti-forestalling rules to counter arrangements that seek to “lock in” lower CGT rates, see CG10249 to CG10251.

For disposals from 23 June 2010 to 5 April 2025 gains which qualify for Business Asset Disposal Relief are charged at a rate of 10%.

For disposals from 6 April 2008 to 22 June 2010 gains which qualify for Business Asset Disposal Relief were reduced by 4/9th. The net amount was the chargeable gain and charged at the single rate of CGT.