---
title: "Founders’ Relief"
url: https://www.boruconsulting.com/glossary/founders-relief
type: DefinedTerm
role: relief
jurisdiction: [UK]
reviewed: 2026-11-10
modified: 2026-11-10
---

# Founders’ Relief

Role: Tax relief | Jurisdiction: UK

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.

## Related concepts
- Related: [Business Asset Disposal Relief (BADR)](https://www.boruconsulting.com/glossary/business-asset-disposal-relief) (the wider owner relief it sits alongside)
- Related: [Investors’ Relief](https://www.boruconsulting.com/glossary/investors-relief)
- Related: [Statutory Residence Test (SRT)](https://www.boruconsulting.com/glossary/statutory-residence-test) (continuous UK residence is one of its conditions)

## Situations
- [Selling or exiting your business](https://www.boruconsulting.com/glossary/situations/selling-your-business): step 2 of 7

## Analysis that discusses it
- [Founders' Relief is a 10% rate for the founder who stays](https://www.boruconsulting.com/blog/founders-relief-uk-conditions) (Taxation Strategy, 2026-11-09)
- [Autumn Budget 2026 for business owners and founders](https://www.boruconsulting.com/blog/autumn-budget-2026-business-owners-founders) (Taxation Strategy, 2026-10-30)

Canonical: https://www.boruconsulting.com/glossary/founders-relief

---
Source: https://www.boruconsulting.com/glossary/founders-relief