If you're planning to sell a business, founded a company, hold employee share options, invest through EIS/VCTs, or hold crypto, Budget 2026 changes the numbers, mostly from 6 April 2027.
Quick answer
- CGT rates unchanged: 18% / 24%, £3,000 exemption.
- Business Asset Disposal Relief: lifetime limit halved to £500,000 (from 6 April 2027). Rate stays 18%.
- New Founders' Relief: 10% CGT on up to £10m of gains for qualifying founders (from 6 April 2027).
- Share schemes: CSOP limit £60,000 → £120,000; EMI exercise window 90 → 180 days.
- Crypto: lending and liquidity pools "no gain, no loss"; stablecoin disposals CGT-exempt; both from 6 April 2027.
- Savings tax rises to 24/44/49% (see savers guide). Dividend tax unchanged.
Selling your business: BADR halved
Business Asset Disposal Relief gives an 18% CGT rate (versus 24%) on qualifying disposals of a business or personal company shares, up to a lifetime limit.
| Disposals before 6 April 2027 | On or after 6 April 2027 | |
|---|---|---|
| BADR rate | 18% | 18% |
| Lifetime limit | £1,000,000 | £500,000 |
What it costs: on a £1m qualifying gain for a higher-rate taxpayer, today the whole gain is taxed at 18% = £180,000. From April 2027, £500,000 at 18% plus £500,000 at 24% = £210,000, so £30,000 more.
Timing matters, but beware anti-forestalling. Normally a disposal happens at the date of an unconditional contract. New rules mean that if you exchange before 6 April 2027 but complete after, the £500,000 cap still applies unless you can show the timing wasn't driven by tax (and, between connected parties, that it was wholly commercial). A statement is needed where the gain exceeds £100,000. Share reorganisations around 6 April 2027 are also caught. Take advice before restructuring a sale.
Previous BADR claims count towards the new lifetime limit.
New: Founders' Relief (10%)
From 6 April 2027, a new relief taxes qualifying founders' gains at 10% on up to £10 million of lifetime gains. Broadly:
You must have:
- held 25%+ of the ordinary share capital when the trade (or preparation for it) started;
- held the shares for 5+ tax years before disposal;
- been UK resident for 5+ continuous tax years before disposal.
The company must:
- be within UK corporation tax with a substantial UK presence for the 5 accounting periods before disposal;
- be a trading company or group, continuing the trade it was founded for;
- have turnover of at least £10 million and 15+ full-time-equivalent employees in the year before disposal.
Interaction: any BADR or Investors' Relief used from 6 April 2027 reduces your Founders' Relief limit. A technical consultation is open, so details may change.
Employee share schemes (from 6 April 2027)
| Change | Before | After |
|---|---|---|
| CSOP individual option limit | £60,000 | £120,000 |
| CSOP options count towards EMI limit? | Yes | No |
| CSOP maximum exercise period | 10 years | 15 years |
| EMI exercise window after a disqualifying event | 90 days | 180 days |
| EMI for companies moving to an Employee Ownership Trust | Restricted | Can continue granting where EOT arrangements are in place |
The EMI grant notification process is also being simplified. Great news for employees of growing UK companies.
EIS, SEIS and VCT investors (mostly from 6 April 2027)
- Exceeding an EIS limit no longer loses all relief. Relief is kept on the part within the limits.
- Same-day SEIS and EIS or VCT investment allowed.
- One investor paying late won't affect other investors' relief.
- VCT relief withdrawals calculated at the rate when the shares were issued.
Crypto holders
Lending and liquidity pools: "no gain, no loss" (from 6 April 2027)
Under current rules, putting crypto into a lending arrangement or liquidity pool can count as a disposal, with a CGT bill even though you haven't cashed out. From 6 April 2027, qualifying arrangements are treated as "no gain, no loss", deferring CGT until you make a genuine economic disposal. Rewards and returns remain taxable.
Stablecoins (from 6 April 2027)
- Disposals of eligible stablecoins by individuals are exempt from CGT, treating them more like money.
- Interest-like returns from lending eligible stablecoins are taxed as savings income (at the new 24/44/49% savings rates).
- Transitional rules apply.
Staking and side income
The trading allowance rises to £3,000 from April 2027, which covers more small staking income. See our crypto staking tax guide and crypto tax hub.
Other changes for investors and owners
- Gift holdover relief on business shares: the restriction for non-trading assets now includes assets under the substantial shareholding exemption and intangibles regime (from 6 April 2027).
- Stamp duty on shares is being replaced by a single digital Securities Transfer Tax from late 2027. That's an administrative change, with no new rate announced.
- UK property CGT returns: if you missed the 60-day return but report the disposal on your Self Assessment return, late-filing penalties stop from then (for returns filed from 28 October 2026).
- Duty to correct errors: from 1 April 2028, you'll have an explicit duty to correct inaccuracies in returns once you spot them, and HMRC gets a new Customer Correction Notice.
- Temporary Repatriation Facility (former non-doms): rate rises from 12% to 15% in 2027/28. See our FIG regime guide.
What to do now
- Planning a business sale? Model before vs after 6 April 2027 and take advice on anti-forestalling
- Founder of a fast-growing company? Check the Founders' Relief conditions and respond to the consultation
- Employer? Review CSOP/EMI grants for April 2027
- Crypto lender or LP? Keep records now. The new rules apply from 6 April 2027.
ProKeeper's view
If you're realistically going to sell your business in the next 12–18 months, the BADR change is worth £30,000 or more on a £1m gain, so get advice now. But don't rush a sale purely for tax: the anti-forestalling rules catch contracts exchanged before 6 April 2027 that complete after. Founders of fast-growing companies should look closely at the new 10% Founders' Relief consultation.
— Riya Simariya, Director, ProKeeper Limited
Part of our series: Budget 2026: what it means for you
Related: Savers & landlords · Crypto tax UK · ESOPs/RSUs after moving to the UK · Limited company services
Selling a business or planning an exit? Book a free consultation.
Official sources
- BADR lifetime limit reduction
- Founders' Relief
- Changes to employee share schemes
- Changes to SEIS, EIS and VCTs
- Cryptoasset loans and liquidity pools
- Tax treatment of stablecoins
- Securities Transfer Tax
- CGT returns for UK land: late filing penalties
- Modernising the correction of errors
- OOTLAR Annex A: rates and allowances
Checked against the Budget 2026 documents published by HM Treasury and HMRC on 28–29 October 2026. General information, not personal advice. Most measures still need to pass through Finance Bill 2026-27.