Business asset disposal relief (BADR), which was called entrepreneurs' relief for tax years prior to 2020–21, is a Capital gains tax (CGT) relief that was designed to encourage individuals to set up and expand their own businesses. Provided that the conditions are satisfied, the effect of the relief is to reduce the rate of CGT on the sale of certain business assets.

BADR attracts the same rate of tax as investors’ relief (the BADR Rate). The BADR Rate is until 5 April 2025. It rises to 14% in relation to disposals made from 6 April 2025 until 5 April 2026 and to 18% (matching the lower main rate of capital gains tax) for disposals made on or after 6 April 2026. These changes are subject to transitional and anti-forestalling rules. These affect the identification of the disposal date for this purpose in certain cases where there is an unconditional but uncompleted contract or where a BADR election is made to disapply the capital gains tax share reorganisation provisions.

The relief applies to individuals, whether