Business Asset Disposal Relief (BADR) for UK founders is rising from 14% to 18% on 6 April 2026 (after increasing from 10% to 14% on 6 April 2025), reducing the tax advantage versus standard Capital Gains Tax (CGT) and making sale timing critical for online businesses. Because HMRC can block attempts to lock in the lower rate using “early” contracts, the way you structure your deal and the exact date it completes are now more important than ever. 

BADR Rate Changes 

• From 6 Apr 2025: BADR 10% → 14% (£1m gain = £140k tax).  

• From 6 Apr 2026: BADR 14% → 18% (£1m gain = £180k tax).  

• Anti‑forestalling: HMRC can apply the higher rate to certain unconditional contracts unless commercial criteria are met.  

Even at 18%, BADR typically remains below the CGT rate faced by many higher‑rate taxpayers, but the saving narrows, increasing the value of precise timing. 

What Is BADR for Online Business Owners?  

BADR reduces the CGT rate on qualifying gains when you sell shares in your trading company (or all/part of the business), up to a £1m lifetime limit per individual; it’s claimed via self-assessment (HS275). Digital businesses (SaaS, content, agencies) can qualify if they meet the trading and ownership tests. 

BADR Eligibility for Online Businesses: 

• Trading status: Your company must be actively trading (not mainly investment). This covers DTC/e‑commerce (Shopify, FBA), SaaS, agencies, and content sites with operational activity. 

• Qualifying disposals: Selling all or part of the business, or selling shares in your personal trading company. Most online exits target share sales to access BADR.  

• Ownership and time tests: Typically ≥5% ordinary shares and ≥5% voting rights, held for at least two years before disposal; you should also be an employee or office holder.  

• Cessation rule: If trading stops, you can still qualify if you sell within 3 years of cessation. Useful if you’ve paused operations while marketing the exit.  

• How to claim: Through your self-assessment tax return (HS275). 

How to Prepare Your Exit to Maximise BADR 

• Audit eligibility now (5%/2‑year/office‑holder/trading tests).  

• Model completion dates around 6 Apr 2026.  

• Favour share sale where possible; align buyer expectations early.  

• Document commercial rationale to mitigate anti‑forestalling exposure. 

• File correctly via self-assessment / HS275 within deadlines. 

Want to Sell Your Online Business Before the BADR Rate Jumps? 

Timing matters more than ever. If you’re planning an exit, getting ahead of these tax changes could save you tens of thousands of pounds. 

Contact us to find out how miqo can help you sell your online business quickly, confidently, and for maximum value. 

Why Founders Choose miqo 

miqo is the UK’s only platform purpose‑built for selling online businesses, combining: 

• Automated legal documentation that removes weeks of admin and cuts deal friction 

• A smart, audit‑ready data room that organises financials, analytics, and operational data for seamless due diligence 

• A curated buyer network actively seeking e‑commerce, content, SaaS, and digital service businesses 

• Transparent valuations and real‑time deal tracking, so you always know where you stand 

• A streamlined, end‑to‑end exit process designed specifically for online business owners; faster, cleaner, simpler 

miqo helps founders complete high‑quality exits in less time, with less hassle, and for stronger multiples. 

Check it out for free here:🔗 https://miqo.io/