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In the lead up to and following the much-anticipated UK budget on 30 October 2024, many business owners had thought about implications for their tax position for the coming periods. When considering selling your business, timing can be crucial, bearing in mind the impact of Capital Gains Tax (CGT).
Why you should act now
CGT rates increased for Business Asset Disposal Relief and Investors’ Relief from its current 10% to 14% from 6 April 2025. This means that a seller will now face higher CGT on the disposal of business assets.
Looking further ahead, from 6 April 2026, these rates are set to increase by a further 4%, reaching a rate of 18%. For business owners this marks a considerable reduction in the net proceeds they would receive from selling a business, after these changes take effect.
What does this mean for you?
If you are planning to retire, create a succession plan, or explore new opportunities, this represents an important window in which to act. Selling before 6 April 2026 allows you to lock in a lower tax rate and retain more value from the sale.
Preparing for sale
Proper preparation is essential to ensure a smooth and profitable transaction. To learn more about preparing your business for sale, read our guide here.
Please note that we do not provide tax advice and strongly recommend consulting with your accountant or tax adviser before proceeding with any business sale.
Read our guide here