UK Chancellor John Healey announced Founders’ Relief as part of the 2026 Budget. The new capital gains tax relief will apply a 10% rate to qualifying share disposals. Gains will be capped at a lifetime limit of £10 million per individual.
Other startup measures
The Budget also raised the tax-free trading allowance from £1,000 to £3,000. It introduced a young entrepreneurs allowance to cover a year of living costs. The British Business Bank will double its investment in funds backing female-led businesses to £200 million.
Relief design
The relief targets founders and significant early investors in high-growth, innovative UK companies. A technical consultation will review individual, company, and growth and innovation conditions. The government will also consider administrative and compliance issues.
Data center covenant
The Budget also set out a new data center covenant. Operators must meet strict tests around local jobs, community investment, and water protection. Critical data centers would receive needed grid connections in return.
The government will use consultation responses to finalize the relief design. Legislation will be introduced in Finance Bill 2026/27. Qualifying disposals made on or after April 6, 2027 will be covered.