BADR CGT Calculator
Calculate your capital gains tax on an agency sale using Business Asset Disposal Relief. Models both the current 2026/27 rate (18%) and the 2025/26 rate (14%), with a £1,000,000 lifetime BADR allowance.
BADR CGT Calculator
Calculate your capital gains tax on an agency sale using Business Asset Disposal Relief. Models both the current 2026/27 rate (18%) and the 2025/26 rate (14%), with a £1,000,000 lifetime BADR allowance.
What you paid for the shares (typically £100 for a founder-owned Ltd).
How much of your £1m lifetime BADR allowance have you already used?
Does not model annual CGT exemption, BADR anti-avoidance rules, or deferred consideration. Not personal tax advice.
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Two scenario columns on the same gain: with Business Asset Disposal Relief and at the standard CGT rate. Shows the BADR saving at 18% (2026/27) or 14% (to 5 April 2026), the lifetime cap and the effective rate.
| A | B | C | D | E | F | G | H | I | J | K | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Your figures (edit the blue cells) | Tax comparison | |||||||||
| 2 | Sale proceeds | £750,000 | Net proceeds (with BADR) | £624,000 | |||||||
| 3 | Original cost | £50,000 | CGT at 18% BADR rate | £126,000 | |||||||
| 4 | Year | 2026/27 | Net proceeds (standard CGT) | £582,000 | |||||||
| 5 | Standard CGT at 24% | £168,000 | |||||||||
| 6 | BADR saves £42,000 on this gain (18% vs 24%) | ||||||||||
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How BADR works
Business Asset Disposal Relief (formerly Entrepreneurs Relief) reduces the CGT rate on qualifying business disposals. For 2025/26 disposals the rate is 14%; from 6 April 2026 it rises to 18%. The lifetime limit is £1,000,000 of gains.
To qualify: you must hold at least 5% of shares and voting rights, have been an officer or employee of the company for the last 2 years, and have held the shares for at least 2 years.
Frequently asked questions
- What is the BADR rate in 2025/26?
- 14% for qualifying disposals in the 2025/26 tax year (on/after 6 April 2025). This rises to 18% from 6 April 2026.
- What happens above the £1m lifetime limit?
- Gains above the lifetime BADR allowance are subject to the standard CGT rate. For higher-rate taxpayers selling business assets this is currently 24%.
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