The tax on the gain from selling your shares, with Business Asset Disposal Relief at 18% up to the £1 million lifetime limit.
From 6 April 2026, qualifying gains up to your £1 million lifetime limit are taxed at 18% under Business Asset Disposal Relief. Gains above the limit are taxed at 18% within any basic rate band your income leaves unused and at 24% above it. The first £3,000 of gains in the tax year is the annual exempt amount.
The calculator sets the £3,000 against gains taxed at 24% first. The law sets unused basic rate band against the gains that get the relief first, so the band only lowers the bill when those gains are smaller than it.
On a £1,500,000 gain with the full lifetime limit and no basic rate band left, that is £180,000 on the first million and £119,280 on the remaining £497,000: £299,280 in all. 2026/27 rates from gov.uk, checked 2 October 2026.
It cannot tell you whether your shares qualify for the relief, which has conditions about the shares you hold and your role in the company. It does not cover losses, earn-outs, loan notes or payments spread over time, or what happens to the proceeds afterwards.
This is information. It is not a personal recommendation. Whether any of it is right for you depends on your circumstances. Tax treatment depends on your circumstances and on current rules, which can change. The Financial Conduct Authority does not regulate tax advice.
No. It is a lifetime limit on gains that qualify for the relief. Put any you have used before in the second box.
24% for a higher or additional rate taxpayer. Any basic rate band still unused after the relief gains is taxed at 18%.
Capital gains tax on a business sale is reported and paid through your tax return. Your accountant will confirm the dates for your sale.
On a £1,500,000 gain, about £299,280 for a higher rate taxpayer with the full relief available.
Read the answer →From April 2026, 100% relief on the first £2.5 million of business and farm property and 50% above.
Read the answer →The same company profit paid into your pension, as salary or as a dividend, and what each route leaves you after tax.
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Work it out →A relevant life premium paid by your company, against the company profit needed to pay the same premium yourself from a dividend or a salary.
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