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Business Asset Disposal Relief (Entrepreneurs’ Relief)

Entrepreneurs’ relief (ER) was renamed business asset disposal relief (BADR) for 2020/21 and subsequent tax years. Find commentary and practical guidance from ICAEW on BADR and ER within the UK tax regime.

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Entrepreneurs’ relief

How long must a qualifying beneficiary have an interest in possession for a trust to qualify for entrepreneurs’ relief on a disposal of trust business assets?
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Webinar

TAXbite: Business asset disposal relief

This TAXbite explains the 2018 and 2019 changes to entrepreneurs' relief, which was renamed business asset disposal relief (BADR) following the 2020 Spring Budget. The changes introduced include the two-year ownership test and the economic ownership test.
Watch the webinar
TAXguide

TAXguide 04/19: Entrepreneurs’ relief – clarification of the new 5% proceeds test

This TAXguide sets out a series of questions raised by the Tax Faculty with HMRC in order to explore the changes made to entrepreneurs’ relief, introduced in Finance Act 2019. HMRC’s replies are set out in full in this TAXguide.
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Features and articles

Exclusive Furnished holiday let reform – the last gasp from the March 2024 Budget!
  • Article
  • 07 Nov 2024
The recently published details of forthcoming reforms to the tax treatment of Furnished Holiday Lettings (FHL) income, which were initially announced in the 2024 Budget but omitted from the Finance Bill, signal significant changes effective from the end of the 2024/5 tax year. These reforms, which were announced on 30 July, were confirmed as part of the 2024 Budget package.
CGT and SDLT rates increased in Budget
  • Article
  • 30 Oct 2024
From 30 October 2024, the main rates of capital gains tax (CGT) will be increased to 18% and 24%. The 10% rate of CGT for disposals attracting business asset disposal relief (BADR) will increase to 14% (from April 2025) and to 18% (from April 2026).
Claims for investors’ relief may not be valid
  • Article
  • 09 Aug 2024
HMRC is writing to taxpayers who claimed for investors’ relief on their 2022/23 income tax self assessment (ITSA) return and do not appear to meet the conditions for the relief.
Taxpayers may have exceeded BADR limit
  • Article
  • 23 Jul 2024
HMRC has contacted taxpayers who may have claimed more than £1m business asset disposal relief (BADR) up to and including 2022/23.
Exclusive Working out the date of disposal isn’t always child’s play
  • Article
  • 30 Apr 2024
How do you determine when an asset was sold when there is no formal documentation? Stephen Relf looks at a recent tax case where the First-tier Tribunal had to do just that.
NAO finds room for improvement in HMRC’s monitoring of tax reliefs
  • Article
  • 07 Feb 2024
The NAO has published its findings and recommendations on how HMRC monitors the effectiveness of ‘non-structural’ tax reliefs.
Exclusive Taxing top incomes: design issues and challenges beyond politics
  • Article
  • 04 May 2023
The recent biennial Institute for Fiscal Studies conference brought together delegates from academia, government and practice to discuss the taxation of top incomes. Mei Lim Cooper looks at some of the cross-cutting themes that emerged.
Exclusive Entrepreneurs’ relief
  • Article
  • 06 Dec 2022
How long must a qualifying beneficiary have an interest in possession for a trust to qualify for entrepreneurs’ relief on a disposal of trust business assets?

Practical guidance

ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax.
TAXguide: 06/20 Spring Budget 2020
  • Technical release
  • 12 Mar 2020
Rishi Sunak delivered his first Budget of 2020 on 11 March. The Tax Faculty provides its summary of all the key tax announcements in this TAXguide.
TAXguide 13/19: ENTREPRENEURS’ RELIEF: Further questions on Finance Act 2019 changes
  • Technical release
  • 30 Sep 2019
Following the publication of TAXguide 04/19 ENTREPRENEURS’ RELIEF: Clarification of the new ‘5% proceeds test’ inserted by Finance Act 2019 - questions on scope of the new provisions along with HMRC responses, further questions have arisen on the Finance Act 2019 entrepreneurs’ relief legislation.
TAXguide 04/19: Entrepreneurs’ relief – clarification of the new 5% proceeds test
  • Technical release
  • 09 Apr 2019
This TAXguide sets out a series of questions raised by the Tax Faculty with HMRC in order to explore the changes made to entrepreneurs’ relief, introduced in Finance Act 2019. HMRC’s replies are set out in full in this TAXguide.
TAXguide 07/15
  • Technical release
  • 14 Sep 2015
  • PDF (188kb)
Finance Act 2015 Changes to entrepreneurs' relief
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Webinars and recordings

TAXbite: Business asset disposal relief
  • Webinar
  • 01 Nov 2019
This TAXbite explains the 2018 and 2019 changes to entrepreneurs' relief, which was renamed business asset disposal relief (BADR) following the 2020 Spring Budget. The changes introduced include the two-year ownership test and the economic ownership test.
View all Tax Faculty webinars

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Business Asset Disposal Relief (previously Entrepreneurs’ Relief)
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on business asset disposal relief (previously called entrepreneurs’ relief) in relation to a business partnership.
Exclusive Shareholding and corporate structures
  • eBook chapter
  • 2024
  • Peter Rayney
  • Tax Planning for Family and Owner-managed Companies
Chapter containing advice on shareholding and corporate structures, written for anyone who advises or runs a family or owner-managed company.
Exclusive Winding-up, administration of companies and disincorporation
  • eBook chapter
  • 2024
  • Peter Rayney
  • Tax Planning for Family and Owner-managed Companies
Tax planning advice on winding up or disincorporating a family or owner-managed company, written for anyone who advises or runs one.
Exclusive Selling the owner-managed business or company
  • eBook chapter
  • 2024
  • Peter Rayney
  • Tax Planning for Family and Owner-managed Companies
Tax planning advice on selling a family or owner-managed company, written for anyone who advises or runs one.
Exclusive Business asset disposal relief (formerly entrepreneurs' relief)
  • eBook chapter
  • 2024
  • Chris Erwood, Jacquelyn Kimber, Iris Wünschmann-Lyall
  • Capital Gains Tax
Expert commentary on the current UK capital gains tax legislation related to business asset disposal relief.
Exclusive Selling or winding-up an owner-managed company
  • eBook chapter
  • 2024
  • Mark McLaughlin, Partha Ray
  • Tax Planning
A chapter on tax considerations when selling or winding-up an owner-managed company, written for professional advisers.
Exclusive Capital gains tax planning: business asset disposal relief and investors’ reliefs for individuals and trusts
  • eBook chapter
  • 2024
  • Zeeshan Khilji
  • Property Tax Planning
Guidance on business asset disposal relief and investors’ reliefs for individuals and trusts, highlighting tax planning opportunities.
Exclusive Capital gains tax reliefs for SMEs and entrepreneurs 2023-24
  • eBook
  • 2024
  • Satwaki Chanda, Chris Williams
  • Capital Gains Tax Reliefs for SMEs and Entrepreneurs
Detailed guidance on the capital gains tax reliefs that may apply on the sale of businesses, business assets, or a gift.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive Business Asset Disposal Relief
  • eBook chapter
  • 2024
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
A section giving a detailed exposition of the circumstances in which Business Asset Disposal Relief is available.
Exclusive Estate planning: capital gains tax
  • eBook chapter
  • 2024
  • Lesley King
  • College of Law Publishing
A detailed section examining the Capital Gains Tax issues that one ought to be aware of when advising a client on making lifetime outright gifts. Covers rates, calculation, exemptions, death, and reliefs. Points are illustrated with worked examples.
Exclusive Business Asset Disposal Relief
  • eBook chapter
  • 2023
  • Telegraph Media Group
  • Kogan Page
  • The Telegraph Tax Guide
A brief section on Business Asset Disposal Relief, outlining the cases in which it is available, and giving a real-world example of its application.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on Business Asset Disposal Relief. A selection of books covering this topic is set out below.
Capital gains tax, 2024-25
  • Library book
  • 2024
  • A. Rainford, L. Webb, J. Woolley
  • Claritax Books
An in-depth guide to capital gains tax (CGT), aimed at accountants and tax specialists. The book provides expert commentary on the issues practitioners are likely to encounter in their day-to-day work around CGT. Topics covered include main residence relief, business asset disposal relief, partnerships, deceased estates, and more.
Business Asset Disposal Relief — 15 years on
  • Library book
  • 2023
  • R. Jamieson
  • LexisNexis
A Tax Digest examining the development of Business Asset Disposal Relief (previously known as Entrepreneurs’ Relief) since the introduction of the regime in 2008. It aims to bring readers up-to-date with all aspects of this valuable capital gains tax incentive.
Small business tax saving tactics: tax planning for sole traders and partnerships, 11th ed.
  • Library book
  • 2023
  • C. Bayley, N. Braun
  • Taxcafe UK
A practical guide to tax saving techniques that can help self-employed business owners (sole traders and partnerships) to pay less tax on their profits. Includes numerous easy-to-follow examples.
Capital gains tax, 2022/23
  • Library book
  • 2022
  • J. Kimber, I. Wünschmann-Lyall, C. Erwood
  • Bloomsbury Professional
An accessible reference guide to capital gains tax, focused on the most commonly found transactions and reliefs. Includes numerous worked examples, as well as cross-references to tax legislation, the HMRC manuals, and other HMRC guidance.
Preparing your business for sale
  • Library book
  • 2016
  • Indicator FL Memo
  • Indicator FL Memo
Appendices include: SWOT analysis; SWOT chart; customer credit control checklist; P/E factors and company valuation data; election for entrepreneurs' relief to apply to qualifying corporate bonds; election for incorporation relief not to apply; non-disclosure agreement for a contractor; business model canvas; and due diligence checklist of questions.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
Business Asset Disposal Relief on GOV.UK
  • Website
  • 08 Mar 2018
Official guidance aimed at claimants of Business Asset Disposal Relief for Capital Gains Tax covering eligibility, working out tax and how to claim.
Business Asset Disposal Relief: HS275 Self Assessment helpsheet
  • Website
  • 08 Mar 2018
Annually updated helpsheets to help claimants ascertain if they are entitled to Business Asset Disposal Relief.
Capital Gains Manual — Reliefs: Business Asset Disposal Relief
  • Website
  • 12 Mar 2016
HMRC internal manual providing detailed guidance on disposals, calculation of relief, share exchanges, trading companies and groups.
Capital Gains Tax: Entrepreneurs’ Relief tax avoidance scheme
  • Website
  • 14 Sep 2016
Bulletin describing a tax avoidance scheme that exploits Entrepreneurs' Relief. It describes how the scheme works and why it should not be used.

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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