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The Business Asset Disposal Relief lifetime limit is to fall from £1 million to £500,000 for sales on or after 6 April 2027. On a £1 million gain that adds £30,000 to a higher-rate seller's tax.
Published 3 November 2026
All articlesHMRC's tax information and impact note, published on 29 October 2026, says the lifetime limit for Business Asset Disposal Relief "will be reduced from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027". The change was announced at Budget 2026 and is not yet law. HMRC estimates about 13,000 of roughly 51,000 claimants will be affected.
£1,000,000 at 18%
£180,000£500,000 at 18% is £90,000
£500,000 at 24% is £120,000
The relief rate is 18% for disposals from 6 April 2026. It was 14% from 6 April 2025 to 5 April 2026. Gains above the lifetime limit are taxed at the normal rates: 24% for higher and additional rate taxpayers.
Anti-forestalling rules apply to unconditional contracts entered into before 6 April 2027 that have not completed by then. Gains under those contracts are subject to the £500,000 limit unless the parties can show they did not enter the contract to obtain a tax advantage.
A sale of the trade and assets also has a VAT question. If it qualifies as a transfer of a going concern, no VAT is charged on the assets, and the buyer must opt to tax the building where the seller has.
We work out the tax on the sale, check that the relief conditions are met, and plan the timetable with your solicitor. More on buying or selling a hospitality business.
Not yet. It was announced at Budget 2026 and is in HMRC's tax information note of 29 October 2026.
18% for disposals from 6 April 2026.
Send us your last accounts, a recent VAT return and one payroll run. We will show you what we would change and what it would cost each month.