This page estimates UK Capital Gains Tax on a qualifying business for the 2025-26 tax year. Business Asset Disposal Relief (BADR, formerly Entrepreneurs’ Relief) charges qualifying business disposals at a flat 14% in 2025-26 — up from 10% — on up to a £1 million lifetime limit. The calculator above is pre-filled with a realistic example and you can change every figure.
Worked example
A £500,000 qualifying business gain attracts £69,580 in CGT under Business Asset Disposal Relief — a flat 14% on the £497,000 that remains after the £3,000 allowance.
| Step | Amount |
|---|---|
| Qualifying gain | £500,000 |
| Less £3,000 annual exempt amount | −£3,000 |
| Taxable gain | £497,000 |
| Business Asset Disposal Relief at 14% | £69,580 |
| Net after CGT | £430,420 |
| Effective rate on the gain | 13.9% |
BADR applies to disposals of all or part of a trading business, or shares in a personal company where you hold at least 5% and have been an employee or office-holder, generally for at least two years. The 14% rate applies to disposals on or after 6 April 2025 (it was 10% before, and rises to 18% from 6 April 2026). The lifetime limit is £1 million of qualifying gains.
The rate rose to 14% in 2025-26
BADR was charged at 10% for disposals up to 5 April 2025. For disposals on or after 6 April 2025 the rate is 14%, and it rises again to 18% from 6 April 2026. The £1,000,000 lifetime limit is unchanged. Source: HMRC CG63515.
CGT rates & allowance — 2025-26
| Item | 2025-26 figure |
|---|---|
| Annual exempt amount (individuals) | £3,000 |
| Annual exempt amount (most trusts) | £1,500 |
| Main rate — gains within unused basic-rate band | 18% |
| Main rate — gains above basic-rate band | 24% |
| Residential property — basic / higher | 18% / 24% |
| Trustees & personal representatives | 24% |
| Business Asset Disposal Relief | 14% (lifetime limit £1,000,000) |
| Basic-rate band split point (taxable income) | £37,700 |
The main 18% / 24% rates apply to all chargeable assets for disposals on or after 30 October 2024, so they cover the whole 2025-26 tax year. Your gain is stacked on top of your taxable income: the part still within the £37,700 basic-rate band is taxed at 18%, and the rest at 24%.
How CGT is worked out
- Gain = disposal proceeds − cost − allowable expenses.
- Subtract the £3,000 annual exempt amount (per person, can’t be carried forward).
- Stack on income: taxable income up to £37,700 uses the basic-rate band; the unused part is available for the gain at 18%.
- Apply the rates: 18% within the remaining basic-rate band, 24% above, or a flat 14% if Business Asset Disposal Relief applies.
Sources & as-of
- Annual exempt amount (£3,000) and rates: GOV.UK — Capital Gains Tax rates and allowances.
- 18% / 24% main rates effective 30 October 2024: GOV.UK — Capital Gains Tax rates of tax.
- Business Asset Disposal Relief 14% from 6 April 2025: HMRC CG63515.
- Income Tax thresholds (£12,570 / £37,700 / £50,270): GOV.UK — Personal Allowance and basic rate limit 2022–2026.
- 60-day property reporting: GOV.UK — Report and pay CGT.
- Page data as-of 2026-06-18. This is a planning estimate, not tax advice. Share-matching/pooling, reliefs and losses can change your gain — confirm your position on GOV.UK or with an adviser. Rates can change at fiscal events.