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Business Asset Disposal Relief (UK)

Also called: BADR, Entrepreneurs' Relief

In one line

A UK relief that can reduce the capital-gains tax rate on qualifying business share sales, up to a lifetime limit.

In plain English

Formerly Entrepreneurs' Relief, BADR lowers CGT on eligible sales of business shares (often including EMI shares) up to a lifetime cap — a valuable break for founders and early employees.

If you were explaining it to a 5-year-old

A special British discount that makes the tax on selling your club toys even smaller, up to a lifetime limit.

Why it matters when you sell

Qualifying for BADR can meaningfully cut the tax on a UK share sale, so it's worth checking before you sell.

Related terms

UK capital gains tax (CGT)EMI option (UK)Growth shares (UK)Long-term capital gains

Put it to use

How to get liquidity (Europe)

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Sources

Primary references for this term: UK Government / HMRC (gov.uk). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.