BADR saving calculator

It works out the capital gains tax on your gain twice, once with Business Asset Disposal Relief and once without, using 2026/27 rules. The difference between the two is your estimated saving. With relief, qualifying gains up to your remaining £1m lifetime limit are taxed at 18%. Without it, gains are taxed at 18% within your unused basic rate band and 24% above it.

It assumes you're a UK resident individual selling shares, with no other gains or losses in the tax year. If you answer Yes or Not sure to the conditions question, it treats your gain as qualifying for relief, up to your remaining lifetime limit. It sets the £3,000 annual exempt amount against gains that don't qualify for relief first, as that is usually the most efficient order.

Your income decides how much of your basic rate band is left, and without BADR, gains within that band are taxed at 18% rather than 24%. Gains that qualify for BADR use up the band before other gains. So your income can change the tax you'd pay without relief, and with it the size of the saving.

Enter the qualifying gains you've already claimed relief on, including any claimed as Entrepreneurs' Relief. The calculator takes these off the £1m lifetime limit and only applies the relief to what is left. Any gain above the remaining limit is taxed at the normal capital gains tax rates.

No. It treats your whole gain as arising on a straightforward sale of shares. Earn-outs, loan notes and rollover shares can change when and how a gain is taxed, and sometimes whether relief is available on part of it. If your price includes any of these, it's worth getting advice on how the whole deal will be taxed.

It applies the 2026/27 rates and limits to the figures you enter, so it gives a good indication for a simple share sale. It isn't advice, and it doesn't check whether you actually meet the BADR conditions, which is where many claims fail. For a figure you can rely on, have your position reviewed before you agree terms.

No. The calculator runs in your browser, and the figures you enter aren't stored or sent anywhere. If you accept analytics cookies, we record only that the tool was used, not what you entered. It's free to use and you don't need to give your name or email address.

For a sale on or after 6 April 2026, BADR taxes qualifying gains at 18% instead of 24%. On the full £1m lifetime limit, that is a saving of up to £60,000 per person. Your saving will be lower if part of your gain would have fallen within the basic rate band anyway, or if you've already used some of your limit.

In 2026/27, gains qualifying for Business Asset Disposal Relief are taxed at 18%, up to the £1m lifetime limit. Other gains are taxed at 18% within your unused basic rate band and 24% above it, after the £3,000 annual exempt amount. For comparison, the BADR rate was 14% in 2025/26 and 10% before that.

Check that you meet the BADR conditions for the full two years before the sale: a trading company, an officer or employee role, and at least 5% of the shares, votes and economic rights. Then look at how the price will be paid. To talk it through, book a call, email taxadvisory@aswatax.co.uk or message +44 7537 143695 on WhatsApp, and we'll reply within one working day.