Founders’ Relief
Tax reliefUKReviewed November 2026
A proposed UK Capital Gains Tax relief that applies a reduced rate to qualifying disposals of shares by founders who held a large equity stake from the time the company began trading and have stayed UK resident. It is aimed at the founders of fast-growing companies and sits alongside Business Asset Disposal Relief rather than replacing it.
It was announced at Budget 2026 to apply to qualifying disposals from 6 April 2027, with a technical consultation on its design and legislation planned through amendments to the Finance Bill 2026-27, so its conditions may still change before it becomes law.
How it connects
- Related
- Business Asset Disposal Relief (BADR): the wider owner relief it sits alongside
- Investors’ Relief
- Statutory Residence Test (SRT): continuous UK residence is one of its conditions
Where it comes up
- Selling or exiting your businessStep 2 of 7
Analysis that discusses it
- Founders' Relief is a 10% rate for the founder who staysTaxation Strategy · 9 Nov 2026
- Autumn Budget 2026 for business owners and foundersTaxation Strategy · 30 Oct 2026
A definition of an established legal or tax concept for general information. It is not advice on any individual situation.
More in Reliefs & personal tax
Does this apply to your situation?
A director will review your enquiry and respond to scope the work and next steps.