Business Asset Disposal Relief (BADR)
A relief that reduces the Capital Gains Tax rate to 10% on qualifying gains from the disposal of business assets, formerly known as Entrepreneurs' Relief. It applies to sole traders, business partners, and shareholders in personal companies who meet strict ownership and trading conditions. There is a lifetime limit of £1 million of qualifying gains per individual.
Related Terms
Capital Gains Tax
A tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value, such as shares, investment property, or business assets.
Annual Exempt Amount
The amount of capital gains you can make in a tax year before Capital Gains Tax becomes due, currently £3,000 for individuals.
Investors' Relief
A Capital Gains Tax relief that reduces the CGT rate to 10% on gains from disposing of shares in unlisted trading companies, aimed at encouraging external investors in small businesses.
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