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Business asset disposal relief, BADR (previously known as entrepreneurs' relief)

C3.1301 Business asset disposal relief BADR (entrepreneurs' relief)—overview

[For additional key resources on this topic see 'Business asset disposal relief—related content' below.]

Business asset disposal relief (BADR), which was previously known as entrepreneurs' relief before the tax year 2020/21, is a capital gains tax relief on qualifying business disposals by, typically, small and medium-sized business owners, be they shareholders in their personal company, sole traders, partners, or trustees of a settlement with a qualifying beneficiary¹. Disposal for these purposes is any kind of disposal that gives rise to a capital gain², so includes, for example, sales, gifts, transfers at undervalue, capital sums derived from assets (see C1.319), and capital distributions (see D6.207)³ (such as those made in respect of shares disposed of as a result of the winding up of a company⁴, though see 'Business asset disposal relief on distributions in a winding-up' in C3.1302A