Where this fits
We advise on what to do with the money from the sale, whichever side of April 2027 it falls.
Sunny Bharj
Independent Financial Adviser
Tony Springer
Independent Financial Adviser
The date changes your tax only if your gain is over £500,000 and you have relief left to use. For disposals on or after 6 April 2027, Business Asset Disposal Relief covers £500,000 of gains in your lifetime instead of £1 million, still at 18%. For a higher rate taxpayer with the full limit unused, a gain of £1 million or more pays £30,000 more after that date. HMRC says three-quarters of people who claim the relief will still get it on their whole gain.
Budget 2026: Overview of tax legislation and rates, paragraph 1.33 and Annex A; HMRC tax information and impact note, 28 October 2026. Checked 6 November 2026.
For a higher rate taxpayer who has not used any of their lifetime limit. The £3,000 annual exempt amount is the same either side of the date, so it is left out.
For capital gains tax, a sale takes place when the contract is made, not when it completes. A conditional contract takes place when the condition is met (section 28, Taxation of Chargeable Gains Act 1992).
The Budget adds a rule for unconditional contracts made before 6 April 2027 that complete after it. The £500,000 limit applies unless the parties can show they did not make the contract to gain a tax advantage from that timing rule, and, where buyer and seller are connected, that it was made for wholly commercial reasons. Where the gain is over £100,000 a statement is also needed.
A similar rule covers share reorganisations and share exchanges where the election to claim the relief is made on or after 6 April 2027. Your accountant checks how either applies to your sale.
A new relief taxes qualifying founders of fast-growing companies at 10% on up to £10 million of gains from 6 April 2027. HMRC expects about 600 people a year to qualify: What is Founders' Relief?
A contract made before 6 April 2027 that completes after it keeps the £1 million limit only if it was not timed for the tax.
No. The Budget lists 18% for both 2026/27 and 2027/28. The change is to the lifetime limit.
Yes. Each person who qualifies for the relief has their own lifetime limit, £500,000 each for disposals from 6 April 2027.
Relief claimed in the past counts against the limit. If you have used £500,000 or more already, a sale from 6 April 2027 gets no further relief.
It was announced at the Budget on 28 October 2026 and will be in Finance Bill 2026-27.
We advise on what to do with the money from the sale, whichever side of April 2027 it falls.
Independent Financial Adviser
Independent Financial Adviser
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