BADR replaced its predecessor, entrepreneurs' relief, from 6 April 2020. The relief continued to offer a 10% rate of tax on the gains from selling a business, along with land and buildings associated with that business.
After the qualifying period was extended to two years from 6 April 2019, BADR reduced the lifetime limit to £1 million (previously £10 million), which reduced the attraction of what had been a valuable and popular relief.
No changes to BADR were announced by the Chancellor in the 2021 Budget and therefore where an individual sells a trading business owned for at least two years, or a share in a partnership, then BADR will be available. Similarly, individuals who own at least 5% of the ordinary share capital in a trading company and have also been an employee or officer for at least two years, may sell their shares and attract a 10% rate on up to £1 million of the gain. If this lifetime limit is exceeded, tax will be 20%, in most cases.