The Autumn Budget introduced significant changes to tax rates, alongside the pressure of increasing employers’ National Insurance contributions, that will affect business owners planning to sell their business.
As of 30th October 2024, Capital Gains Tax (CGT) rates have increased for all assets other than residential property and carried interest. Basic rate taxpayers will now see CGT rise from 10% to 18%, while higher rate taxpayers will see an increase from 20% to 24%, meaning that you may incur increased tax liability and reduced net proceeds.
Additionally, Business Asset Disposal Relief (BADR), also known as Entrepreneurs’ Relief, will rise from 10% to 14% on 6th April 2025, with a further increase to 18% in the following tax year. While BADR still offers a tax reduction relative to the main CGT rates, the tax advantage is now less significant.
For business owners considering an exit, these changes mean an increased tax liability on gains above £1 million before 6th April 2025. Fortunately, there remains a window of opportunity to finalise your sale and secure the current tax rates before the next financial year. To take advantage of this period, accelerating the sale of your business is crucial.
Discover businesses for sale by registering or logging in at BusinessBuyers.co.uk, an Altius Group site.
In this evolving landscape, Altius Group are certain that we can maximise the value of your business, ensuring a seamless and efficient sale and allowing you to exit on your terms. Contact us today to explore your options and discuss the sale of your business in confidence.
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If you are considering selling your business and have any questions about what you may need to consider, then one of our experienced sales negotiators are always here to chat through any important points you may want to discuss.
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