# UK plans to halve Business Asset Disposal Relief lifetime cap

> HMRC set out plans on 29 October to reduce the Business Asset Disposal Relief lifetime limit from one million pounds to 500,000 pounds of qualifying gains.

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- Publisher: Newsverum
- Section: Fiscal Policy
- Country: United Kingdom
- Published: 2026-10-29T15:21:36+00:00
- Updated: 2026-10-29T15:21:36+00:00
- Event / data period: 2026-10-29
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HMRC set out plans on 29 October to reduce the Business Asset Disposal Relief lifetime limit from one million pounds to 500,000 pounds of qualifying gains. The smaller cap would apply to qualifying disposals from 6 April 2027. Gains eligible for the relief are taxed at 18%.

The calculation must take account of qualifying gains for which relief was previously claimed. Proposed anti-forestalling rules address certain contracts agreed before the effective date but not completed, as well as specified share reorganisations. Eligibility therefore depends on more than the date on which a seller receives payment.

The impact note estimates that around 13,000 individuals would be affected, while about 75% of approximately 51,000 claimants would remain unaffected. The government proposes legislation in the Finance Bill. The 500,000-pound figure is a lifetime limit on eligible gains, not a business sale-price ceiling or an amount paid to each owner.

## Data

### Source publication

Publication of the official announcement on 29 October 2026.

Methodology: The date records publication of the cited primary source. Financial and statistical reference periods and future implementation dates are identified in the article.

| date | label | description | status |
|---|---|---|---|
| 2026-10-29 | UK plans to halve Business Asset Disposal Relief lifetime cap | HMRC set out plans on 29 October to reduce the Business Asset Disposal Relief lifetime limit from one million pounds to 500,000 pounds of qualifying gains. The smaller cap would apply to qualifying disposals from 6 April 2027. Gains eligible for the relief are taxed at 18%. | occurred |

Sources: <https://www.gov.uk/government/publications/capital-gains-tax-reduction-in-the-business-asset-disposal-relief-lifetime-limit/capital-gains-tax-new-business-asset-disposal-relief-lifetime-limit> · Download data: [JSON](https://newsverum.com/api/v1/articles/uk-business-asset-disposal-relief-lifetime-cap-500000-2027/data/source-announcement?lang=en&format=json) · [CSV](https://newsverum.com/api/v1/articles/uk-business-asset-disposal-relief-lifetime-cap-500000-2027/data/source-announcement?lang=en&format=csv)

## Sources

- [HM Revenue & Customs, UK](<https://www.gov.uk/government/publications/capital-gains-tax-reduction-in-the-business-asset-disposal-relief-lifetime-limit/capital-gains-tax-new-business-asset-disposal-relief-lifetime-limit>) (Source checked: 2026-10-29; Published: 2026-10-29)

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