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In the dynamic landscape of business taxes, one crucial aspect that entrepreneurs must grasp is Business Asset Disposal Relief (BADR) offered by HMRC. This relief aims to provide a favorable tax environment for businesses, encouraging growth and innovation. However, it's essential to understand the limits associated with BADR to make informed financial decisions. Understanding BADR Business Asset Disposal Relief, formerly known as Entrepreneurs' Relief , is a tax relief provided by HMRC to individuals selling or disposing of their business assets. To be eligible for BADR, individuals must meet specific criteria, including holding the business for a certain period and being actively involved in its management. Limitations on Business Asset Disposal Relief While BADR offers a valuable tax advantage, HMRC imposes limits on the relief to prevent misuse. The limit is the maximum amount of gains eligible for BADR, beyond which the standard Capital Gains Tax rates apply. Understanding