UK: what changed on 6 April 2026 for owners who sell or pass on their business

By the Big4PM team · Published 13 November 2026 · 2 min read

In brief. Since 6 April 2026, Business Asset Disposal Relief is charged at 18% (up from 14%) and 100% Business Property Relief applies only to the first £2.5m, transferable between spouses. Above that, relief falls to 50%. For owners of UK companies, the trade-off between selling and passing on the business has changed.

On a sale: Business Asset Disposal Relief at 18%

BADR reduces capital gains tax on the sale of shares in a company where the owner works. Its rate rose from 14% to 18% on 6 April 2026, within a £1m lifetime limit. The maximum saving falls from £100,000 to £60,000. Above it, the standard CGT rate remains 24%.

On succession: Business Property Relief capped at £2.5m

BPR used to exempt unlisted business shares from inheritance tax in full. Since 6 April 2026, 100% relief applies only to the first £2.5m of combined business and agricultural assets. Above that, relief is 50%, an effective 20% rate on the excess. The allowance is transferable between spouses and civil partners, so a couple can pass on up to £5m with full relief.

What it changes

• A company worth £10m, passed on by a couple using both allowances, now bears tax on the value above £5m, about £1m, which the family must be able to pay without selling.
• The heirs' liquidity becomes central: dividends, recapitalisation, insurance or a partial sale.
• The comparison between selling in lifetime (18% then 24%) and passing on (20% above the cap) needs to be redone, with figures.
• Families present in both France and the UK must align these rules with the Dutreil pact and tax treaties.

What we advise

1. Have the business valued and calculate potential tax under the new cap.
2. Check that both spouses' allowances can actually be used (wills, ownership of shares).
3. Plan the source of cash that will pay the tax, before it falls due.
4. Validate the plan with a UK tax adviser.

This article is general information. It is not investment, legal or tax advice. The rules quoted must be checked by your advisers before any decision.