Planning to sell your business? Capital Gains Tax changes could affect your timeline

For many business owners, selling a business represents the culmination of years of hard work. Alongside valuation, timing and succession planning, tax remains a key factor in determining the overall outcome of a sale.

Recent changes to Capital Gains Tax, and in particular Business Asset Disposal Relief (BADR), mean that owners considering an exit should take a fresh look at their plans.

BADR, which can reduce the tax payable on qualifying business sales, previously applied at a rate of 10%.

The rate increased to 14% from 6th April 2025 and now applies at 18% for disposals from 6th April 2026 onwards.

For business owners planning a sale, this represents a significant increase compared with historic levels. While tax should not usually be the sole driver of a business sale, the timing of a disposal may now have a greater impact on the net proceeds received.

Beyond tax, preparing a business for sale involves a wide range of considerations, including financial reporting, operational readiness, due diligence preparation and succession planning. Addressing these areas early can help improve both the value of the business and the flexibility available when the time comes to sell.

Download your free guide to selling your business

At Verallo, we support business owners through growth, succession and exit planning, helping them understand both the financial and practical implications of a future sale.

If you’re beginning to think about a sale, even in the distant future, this 10-step guide is designed to support.

Download your free guide to selling your business which takes you through 10 steps to ensure you get the return you deserve.

If you would like to discuss how the changing tax landscape may affect your plans, or explore the best time and structure for a future sale, contact our team today.