What are the BADR eligibility conditions?

You must hold at least 5% of the company's ordinary share capital, be an officer or employee of the company, and have held the shares for at least two years before the disposal. All three conditions must be met for the disposal to qualify.

What is the BADR lifetime limit?

£1,000,000 across all qualifying disposals in your lifetime. Once you have used the full £1M, any further qualifying gains are taxed at the standard CGT rate. The calculator lets you enter any prior usage so it can calculate your remaining allowance correctly.

What CGT rate applies above the BADR limit?

For 2025/26 and 2026/27, the higher rate of CGT on business assets is 24%. The calculator uses this rate for any gain that exceeds your remaining BADR lifetime allowance.

Free calculator · 2026/27 rates

BADR CGT Calculator

Business Asset Disposal Relief (BADR) reduces your CGT rate to 18% on qualifying gains up to the £1 million lifetime limit for disposals from 6 April 2026 (2026/27). The rate was 14% in 2025/26. Enter your sale proceeds, cost, and any prior BADR usage to see your CGT bill for 2025/26 or 2026/27.

Calculator

BADR CGT Calculator

Sale proceeds (your share)

Original cost of shares

What you paid for the shares originally. Often nominal (£1 or £100) for founders who incorporated their own business.

BADR previously used (lifetime)

The £1M lifetime limit applies across all qualifying disposals ever. If this is your first disposal, enter 0.

Tax year of disposal

Meets BADR eligibility: 5%+ shares, officer or employee, held 2+ years

Total CGT bill

£539,976

21.6% effective rate · net proceeds £1,960,024

Capital gain£2,499,900

Qualifies for BADR (capped at £1M lifetime)£1,000,000

BADR tax£180,000

Gain above BADR limit (standard CGT)£1,499,900

Standard CGT (24%)£359,976

Total CGT£539,976

Net proceeds after CGT£1,960,024

This model assumes higher-rate CGT of 24% on any overflow above the BADR lifetime limit. Actual liability depends on your full income picture and other gains in the year.

Sense-check your figure with an accountant

Calculators give you a solid starting point, but the final number depends on timing, reliefs you may not have considered, and how different taxes interact. A quick conversation with one of our accountants puts a firm figure on it, with no obligation.

How BADR works

Business Asset Disposal Relief reduces CGT to 18% (2026/27, from 6 April 2026) on qualifying gains up to £1 million over your lifetime. The rate was 14% in 2025/26. Any gain above the lifetime limit is taxed at the standard higher rate of 24%.

The BADR rate increased to 18% from 6 April 2026 (up from 14% in 2025/26). On a £1 million eligible gain, this rate change increases CGT by £40,000 compared with a 2025/26 disposal.

Frequently asked questions

What are the BADR eligibility conditions?: You must hold at least 5% of the company's ordinary share capital, be an officer or employee of the company, and have held the shares for at least two years before the disposal. All three conditions must be met for the disposal to qualify.
What is the BADR lifetime limit?: £1,000,000 across all qualifying disposals in your lifetime. Once you have used the full £1M, any further qualifying gains are taxed at the standard CGT rate. The calculator lets you enter any prior usage so it can calculate your remaining allowance correctly.
What CGT rate applies above the BADR limit?: For 2025/26 and 2026/27, the higher rate of CGT on business assets is 24%. The calculator uses this rate for any gain that exceeds your remaining BADR lifetime allowance.

Numbers are one thing. Getting the timing right is another.

Every figure here is modelled on standard 2026/27 thresholds. Your actual position depends on prior-year usage, pension carry-forward, other income sources, and how your decisions interact with each other. We build those models as part of our advisory work.

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