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Why selling your business now can make perfect sense

Changes to the tax rules introduced in the latest Budget have seen a large number of entrepreneurs planning to exit their business to take advantage of current rates before they leap up from April 2025.

We have seen the same with clients bringing forward their plans to exit. There is a clear window of opportunity to consider and we are seeing plenty of action here.

The Business Asset Disposal Relief (BADR) rates are going up in April, so entrepreneurs considering an exit should note this. Until the 5th of April 2025, BADR rates remain at 10% although the standard rate of capital gains tax has increased from 20% to 24%. From 5th April 2025 the BADR rate increases to 14%, with a further increase to 18% for the 2026-27 tax year. We are seeing a rise in business sales as people aim to secure the current lower rates.

If you’re planning to exit soon, it might be worth accelerating those plans to lock in the better tax treatment while you can. But of course, careful planning here is essential and this is where our team can help.

If you are looking to sell your business and take advantage of the current lower rate of tax contact Murray Patt immediately so we can guide you on the process.