Business Asset Disposal Relief
Work out your tax
How you work out your tax depends on whether all your gains are eligible for Business Asset Disposal Relief.
If all your gains qualify for Business Asset Disposal Relief
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Work out the gain for all qualifying assets.
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Add together the gains (and deduct qualifying losses) to work out the total taxable gain that’s eligible for Business Asset Disposal Relief.
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Deduct your tax-free allowance.
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You’ll pay 18% tax on what’s left, 14% if you disposed of the asset between 6 April 2025 and 5 April 2026, or 10% if you disposed of the asset before 6 April 2025.
If you have other gains
How much tax you pay on your other gains depends on what Income Tax rate you pay.
Higher rate and additional rate Income Tax payers
If you’re a higher or additional rate taxpayer, you’ll pay 24% for gains that do not qualify for Business Asset Disposal Relief. You can use your tax-free allowance against the gains that are charged at 24%. You can use any remaining allowance against gains that do qualify for Business Asset Disposal Relief.
Basic rate Income Tax payers
If you’re a basic rate taxpayer, you need to work out the tax rate you’ll pay on gains that are not eligible for Business Asset Disposal Relief.
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Work out how much taxable income you have. Deduct your Personal Allowance and any other Income Tax reliefs you’re entitled to.
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Deduct this amount from the basic rate tax band for the year you made the gains. This gives you the amount of basic rate band you can use against your gains.
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Work out your total taxable gain.
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Use your basic rate band first against any gains eligible for Business Asset Disposal Relief.
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Use any remaining basic rate band against your other gains. You’ll pay 18% on gains made from 30 October 2024.
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For gains above the basic rate band, you’ll pay 24% on gains made from 30 October 2024.
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You can use your tax-free allowance against the gains that would be charged at the highest rates (for example where you would pay 24% tax).
Disposals between 6 April 2024 to 29 October 2024
At the basic rate you’ll pay 18% on gains made on residential property and 10% on gains from all other chargeable assets. Above the basic rate, you’ll pay 24% on gains from residential property and 20% on gains from other chargeable assets.
Disposals between 6 April 2019 to 5 April 2024
At the basic rate you’ll pay 18% on gains made on residential property and 10% on gains from all other chargeable assets. Above the basic rate, you’ll pay 28% on gains from residential property and 20% on gains made from other chargeable assets.
Get help
Contact HM Revenue and Customs (HMRC) or get professional tax help if you need advice.