Business Asset Disposal Relief, formerly known as Entrepreneurs' Relief, reduces the rate of Capital Gains Tax charged on the sale of a qualifying business, shares in a personal company, or business assets. It applies up to a lifetime limit of qualifying gains.
Qualifying conditions
To qualify, the business owner or shareholder generally needs to have held the asset, and met minimum shareholding and employment conditions, for at least two years before the sale. Careful planning is important as the rules and the lifetime limit have changed over time.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.