Owner-managers have always enjoyed some form of 10% capital gains tax (CGT) rate on their business and share disposals since the original ‘retirement relief’ provisions were abolished in 2003.

The latest version of the beneficial 10% CGT rate is provided by business asset disposal relief (BADR) – sometimes still called by its original nomenclature, entrepreneurs’ relief (‘ER’). The 10% rate has been with us since ER was introduced in 2008 but now the Autumn Budget 2024 proposes reducing the value of the relief.

In recent years, business owners and shareholders have seen a large reduction in the amount of gains qualifying for BADR and some tightening of the BADR conditions.