Labour introduced the relief in 2008 under its former name, entrepreneurs’ relief. It originally allowed eligible business owners to pay capital gains tax at 10 per cent on qualifying sales, up to a lifetime limit of £1million.The Coalition government later increased the lifetime allowance to £10million. Rishi Sunak cut it back to £1million in 2020 following criticism that the relief disproportionately benefited wealthy business owners.Rachel Reeves, Mr Healey’s predecessor as Chancellor, subsequently increased the tax rate to 14 per cent and then to 18 per cent in April 2026. The changes were introduced alongside inheritance tax reforms affecting farmers and business owners.HMRC estimates that Business Asset Disposal Relief cost the Treasury £800million in the most recent tax year.The Resolution Foundation, whose former chief executive Torsten Bell now serves as a Treasury minister, has branded BADR “Britain’s worst tax break”.