Home / Selling your business – don’t let Rachel rush you …too much!
6th November 2025
Helen Mather, Partner
Selling your business is a major milestone, and timing can have a significant impact on your financial outcome—especially with upcoming changes to Business Asset Disposal Relief (BADR). With the government (Rachel Reeves) expected to increase the BADR rate from 14% to 18% in April 2026 (on the first £1m of gain), selling your business before then could result in a reduced amount of tax payable and, therefore, a significantly better outcome.
In a scenario where a business is sold for £6 million by two equal shareholders, after transaction costs of £335,000, the amount before tax is £5,665,000. If the sale occurs in November 2025, each shareholder pays £579,800 in Capital Gains Tax (CGT), retaining £2,252,700. If the sale is delayed until June 2026, the CGT per shareholder rises to £619,800, reducing net proceeds to £2,212,700. That’s a loss of £40,000 per shareholder, or £80,000 in total.
While £80,000 may not seem enormous, it’s a meaningful sum for owners seeking to maximize post-sale returns. If your business is ready for sale and you qualify for BADR, completing the transaction before April 2026 could be financially advantageous.
However, tax efficiency is just one part of the equation—and rarely the most important.
Other factors such as business readiness, market conditions, buyer preparedness, and long-term strategic goals often have a greater impact on the outcome. Rushing a sale to meet a tax deadline will rarely result in the best overall outcome, especially if the business or buyer isn’t fully prepared.
At Kuits, we provide tailored advice to business owners at every stage of the sale process. Our integrated teams work closely with clients to assess readiness, structure transactions, and collaborate with trusted external partners to ensure comprehensive advice across legal, financial, and strategic domains.
We’re currently supporting owners in evaluating the impact of the forthcoming BADR changes, and every sale requires a strategy tailored to the business, its shareholders, and its future goals.
With the next budget announcement pending, now is the time to ask: What is your business worth, and how do you realise or grow that value? If you’re considering a sale in the next 12–18 months, or are unsure about your options, speak to our corporate team. We’ll help you clarify your goals, understand the financial implications of timing your exit, and guide you through the process with clarity and confidence.