SearchFounders’ Relief 2026
Founders’ Relief 2026: 10% CGT on Gains up to £10m
In today’s Autumn Budget, the Chancellor announced Founders’ Relief, a brand-new Capital Gains Tax relief. It offers a 10% rate on lifetime gains of up to £10m for founders of the UK’s most successful businesses.
If you’re building a business and thinking about an exit, this could be the most significant change to your tax position in years. Here’s what we know so far, what we don’t yet know, and what you should do now.
What we know
- Rate: 10% Capital Gains Tax on qualifying gains.
- Limit: up to £10m of lifetime gains, ten times the £1m limit for Business Asset Disposal Relief (BADR).
- Who it’s aimed at: founders of high-growth, successful companies. The Chancellor’s wording suggests it will be more targeted than BADR.
What we’re waiting for
The full detail will follow in HMRC’s technical papers and the draft legislation. In particular, we’re waiting for:
- the qualifying conditions (shareholding, role, holding period, type of company)
- when the relief starts, and whether it applies to deals already in progress
- how it interacts with BADR, and whether BADR itself is changing
- how it applies to sales to Employee Ownership Trusts and private equity
We’ll update this page as soon as the detail is published.
How it compares
| Founders’ Relief | BADR (2026/27) | No relief | |
|---|---|---|---|
| CGT rate | 10% | 18% | 24% (higher rate) |
| Lifetime limit | £10m | £1m | n/a |
What it might mean for you
Take a founder selling their shares for a £10m gain:
- With no relief: £2.4m in Capital Gains Tax
- Claiming BADR today: £2.34m (18% on the first £1m, 24% on the rest)
- Under Founders’ Relief: £1m
That’s a potential saving of around £1.34m, assuming the gain qualifies. Final conditions are still to be confirmed.
What to do now
- Don’t rush a deal. Until the start date and transitional rules are confirmed, signing early could leave you worse off. Anti-forestalling rules often catch contracts signed just before a change.
- Review your structure. Shareholdings, share classes and holding periods may decide whether you qualify.
- Talk to us early. If an exit is likely in the next few years, the planning you do now could be worth seven figures.
Speak to our tax team
Our tax and corporate finance partners advise founders and owner-managers across the North West and beyond on exits, sales and succession.
Contact us via imagine@hurst.co.uk or 0161 477 2474
This page reflects announcements made in the Autumn Budget on 28 October 2026. Detail may change as legislation is published. It isn’t advice for your specific circumstances, so please speak to us before acting.
