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Michael Carter, Partner and Head of Incentives at international law firm Osborne Clarke, has commented on changes to Business Asset Disposal Relief and the introduction of a new Founders Relief announced in the Autumn Budget on 28 October 2026.
According to Osborne Clarke, Mr Carter said the Chancellor had delivered what he called “something of a mixed message for entrepreneurs” in the Budget, pointing to a reduction in the lifetime limit for Business Asset Disposal Relief alongside the introduction of the new Founders Relief.
Key points
- The Autumn Budget was delivered on 28 October 2026.
- Business Asset Disposal Relief’s lifetime limit has been reduced from £1 million to £500,000, according to Osborne Clarke.
- Osborne Clarke said qualifying business owners can now save a maximum of £30,000 in capital gains tax over their lifetime under the existing relief.
- A new Founders Relief has been introduced, offering a 10% tax rate on up to £10 million of lifetime gains, Osborne Clarke said.
- Michael Carter, Partner and Head of Incentives at Osborne Clarke, provided comment on the changes.
What was announced
Osborne Clarke said the Budget contained two significant changes affecting entrepreneurs and business owners. Business Asset Disposal Relief has been reduced, with its lifetime limit cut from £1 million to £500,000, which the firm said leaves qualifying business owners able to save a maximum of £30,000 in capital gains tax over their lifetime. At the same time, a new Founders Relief has been introduced, offering a 10% tax rate on up to £10 million of lifetime gains.
Carter’s assessment
Mr Carter said: “The Chancellor has delivered something of a mixed message for entrepreneurs in today’s Budget.”
On Business Asset Disposal Relief, he said: “Business Asset Disposal Relief has been cut back again, with the lifetime limit reduced from £1 million to £500,000. That leaves qualifying business owners able to save a maximum of just £30,000 in capital gains tax over their lifetime under the existing relief.”
On the new relief, he said: “the introduction of a new Founders Relief could be much more significant. Offering a 10% tax rate on up to £10 million of lifetime gains, it appears to restore a substantial incentive for entrepreneurs to build and sell businesses in the UK.”
He added: “The key question is who will qualify and how the new relief will work in practice. If it is sufficiently accessible, this could be welcome news for entrepreneurs and help encourage further investment. But as ever with tax changes, the devil will be in the detail.”