If you are a business owner with thoughts of selling or exiting your business in the next few years, there’s a crucial deadline looming that could have a significant impact on how much value you walk away with. In April 2026 anticipated changes to Capital Gains Tax (CGT) and Business Asset Disposal Relief (BADR) come into effect, potentially increasing your tax bill and reducing the value of your hard-earned exit.
Here’s what you need to know, and why acting now could protect your wealth and ensure you get the best possible outcome when it’s time to move on.
The April 2026 Deadline
As part of the Autumn 2024 Budget measures, the CGT rate for BADR gains rose to 14% from April 2025. The rate will increase further to 18% for disposals on or after 6 April 2026.
Why Business Owners Should Act Now
Timing is everything in business – and in tax planning, it’s even more critical. If you’re considering selling your business within the next 2-3 years, waiting too long could be a costly mistake. By planning ahead and exploring your options now, you can:
- Maximise your post-sale wealth by taking advantage of current CGT and BADR rules while they’re still in place.
- Give yourself time to structure your exit wisely, whether through a sale, management buyout, or other route.
- Allow for succession planning, helping you transfer ownership smoothly and tax-efficiently, especially if you’re passing your business to family members or employees.
Get Expert Advice – Don’t Go It Alone
Exiting a business isn’t just a transaction, it’s a life event. It’s also a highly complex process, with tax planning, legal implications, and valuation considerations that demand expert support. It’s essential to work with a specialist advisor who understands your personal goals and the intricacy of business exits under UK tax law.
April 2026 may seem like a long way off – but in the world of business planning and deal-making, it’s right around the corner. Don’t let a future tax hike catch you off guard.
If you’re even thinking about selling or exiting your business in the next couple of years, now is the time to start the conversation. Get in touch with our team of expert business advisors today – we’re here to help you make the most of your next move. Contact Geoff Pinder or Nick Lankester.