Business Asset Disposal Relief (UK)
Business Asset Disposal Relief can apply a special capital gains tax rate to qualifying gains on a disposal of a business, part of a business or certain shares, subject to statutory conditions and a lifetime qualifying limit. For the 2025–26 tax year used in TX-UK June 2026–June 2027, ACCA’s Finance Act 2025 guidance states a 14% rate and a £1 million lifetime limit. Eligibility, ownership periods, prior use of the limit and allocation of losses and the annual exempt amount require separate assessment.
Worked example
For a 2025–26 qualifying disposal, assume £100,000 of taxable gain remains after any applicable losses and exemptions, the individual has sufficient unused lifetime limit and all conditions are met. At 14%, the tax on that qualifying amount is £14,000.
Common mistake
Assuming that any sale of shares automatically qualifies for relief.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |