Budget 2026: Healey reduces threshold for Business Asset Disposal Relief

Chancellor John Healey has confirmed that he will reduce the threshold for Business Asset Disposal Relief in Capital Gains Tax. Healey lowered the threshold for business asset disposal relief (BADR) in capital gains tax (CGT) from £1m to £500,000 which he said will mean no changes for three in four claimants . Healey also unveiled a new relief in CGT, dubbed ‘Founder’s relief’, in a bid to keep companies operating in the UK. The tax relief is a 10 per cent rate on lifetime gains of up to £10m “for the founders of our most successful firms”. He said: “I know that starting a company means taking risk. Leaving a secure job to build something with no guarantee that it will work. “And I believe that when business founders take that risk, build an exceptional company and create wealth for Britain, we should recognise that success and keep those people here to invest again.” Malli Kini, partner at advisory firm Blick Rothenberg, said: A new founders’ relief on the first £10 m