- The Chancellor has announced an increase to the CGT rates where Business Asset Disposal Relief (BADR) and Investors' Relief (IR) apply, from 14% to 18% from 6 April 2026.
- BADR is a CGT relief which reduces the CGT rate on qualifying gains made on disposal of eligible business assets from 24% to the rates set out above. Various conditions must be met to qualify for the relief.
- IR also results in a reduced CGT rate on up to £1m of qualifying gains over an individual’s lifetime. Broadly, IR is available on gains made on disposal of shares in a qualifying unlisted trading company where an individual who made the gain subscribed for the shares and is neither an employee nor a paid director of a company. Conditions also apply.
- Timing: The increase in the CGT rate to 18% where BADR or IR applies will take effect from 6 April 2026.
Personal Taxes
Fiscal policy
Business Asset Disposal Relief and Investors' Relief rate increase
Last updated: 30/04/2025
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