Business Asset Disposal Relief in the UK: what the 2026 rise means for your business sale
Business Asset Disposal Relief (BADR) is still one of the most important tax reliefs available to UK business owners planning a business sale, succession or exit, but the rate increase to 18% from 6 April 2026 makes early tax preparation and deal structuring more critical than ever. Qualifying gains are now taxed at a higher rate, directly affecting the net proceeds business owners keep on completion.
What Business Asset Disposal Relief is
Business Asset Disposal Relief is a Capital Gains Tax relief that can apply when you sell all or part of your business, shares in a trading company, or an interest in a trading partnership, provided specific conditions are met. In simple terms, it reduces the tax cost of a successful exit and can materially increase the after-tax value realised by founders, shareholders and management teams at the point of sale.
For many owners, BADR sits alongside wider succession and inheritance considerations. While BADR itself is a disposal relief rather than an inheritance tax relief, it often interacts with family ownership plans and estate strategy.
Common mistakes business owners make
Many of the most costly tax issues arise not from aggressive planning, but from simple, avoidable mistakes. Common pitfalls include:
Tax structuring approaches to mitigate or manage BADR
There is no one-size-fits-all solution, but a range of tax and structuring approaches can help owners prepare more effectively for a business sale or succession event. These should always be discussed with professional advisers and tailored to individual circumstances, but commonly explored routes include:
Indicative timeline for implementing structuring options
A realistic timeline can help ensure that tax and structuring work supports the transaction, rather than delaying or complicating it.
How Deal Ascent supports business owners
Deal Ascent acts as a long-term partner to business owners, not just a broker for one-off transactions. We help you think about succession, inheritance, and business sale decisions as part of a joined-up strategy, rather than isolated events.
We work closely with a regional network of experienced tax advisers who can support with:
- Business Asset Disposal Relief planning and eligibility checks.
- Pre-sale tax structuring, including group reorganisations and ownership reviews.
- Family investment trusts and broader family succession planning where appropriate.
- Structuring management buyouts, staged exits and partial disposals.
- Coordinating transaction, tax and estate planning so they work together, not against each other.
By combining specialist M&A advisory with dedicated tax input, we aim to protect value, minimise avoidable tax leakage, and create a smoother, more credible sale process for all stakeholders.
Planning a sale or succession in the next 12–24 months?
Speaking to Deal Ascent early can give you more options, more control and a better-informed path to exit.