CGT Business Asset Disposal Relief 2027 Calculator UK
Calculate Capital Gains Tax with Business Asset Disposal Relief (BADR). 14% rate from April 2026, rising to 18% in April 2027. £1m lifetime limit.
| Annual Exempt Amount 2026/27 | £3,000 |
| BADR lifetime limit | £1,000,000 |
| BADR remaining | — |
| BADR tax | — |
| Standard CGT tax | — |
| Net proceeds | — |
What Is BADR in 2026/27?
Business Asset Disposal Relief (formerly Entrepreneurs' Relief) reduces Capital Gains Tax on qualifying disposals of a business or shares in a personal trading company. The lifetime limit is £1m of gains. From 30 October 2024 to 5 April 2026 the rate was 10%; from 6 April 2026 it rises to 14%; from 6 April 2027 it rises again to 18%. To qualify you must have owned the business / 5%+ shares and been an officer or employee for at least 2 years.
How the Rate Increases Hit
Pre-Autumn Budget 2024, BADR was 10% — Labour's first Budget tripled it over two years. The rises are: 10% to 5 April 2026, 14% from 6 April 2026, 18% from 6 April 2027 (matching the basic CGT rate). For a £1m gain, the difference is £40,000 (2025/26 vs 2026/27) and £80,000 (2025/26 vs 2027/28). Many sellers brought disposals forward to lock in 10%.
How to Plan Ahead
If you are in negotiations now, sequencing matters: completion on or before 5 April 2026 locks 10%; before 5 April 2027 locks 14%. Investors' Relief (separate, also raised to 14%/18%) has its own £1m lifetime limit. Share-for-share rollover, EIS deferral, and Bed-and-ISA / Bed-and-Spouse strategies remain available to manage timing. Consult a chartered tax adviser early — anti-forestalling rules may apply to contracts signed pre-Budget but completed post-Budget.
Source and Disclaimer
Rates sourced from gov.uk Capital Gains Tax Manual as of May 2026. This is an educational calculator and is not tax advice. Consult a chartered accountant or tax adviser before any business disposal. Last updated: May 2026.
Source: gov.uk/business-asset-disposal-relief