BUSINESS ASSET DISPOSAL RELIEF

From April 6th 2026 tax on business sales in increasing from 14% to 18%.

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Key Changes Taking Effect from April 2026

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Higher Tax Rate: From 6 April 2026, the tax rate applied to qualifying disposals will increase from 14% to 18%. This measure, confirmed in the 2024 Budget, will impact individuals who sell eligible business assets on or after this date.

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Lifetime Allowance Unchanged: The lifetime allowance for Business Asset Disposal Relief will remain capped at £1 million. Gains within this limit will continue to qualify for the reduced rate, while any excess will be subject to standard Capital Gains Tax rates.

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Qualification Requirements: To be eligible for Business Asset Disposal Relief, individuals must typically have held at least 5% of both the shares and voting rights in a trading company for a minimum period of two years before the disposal takes place.

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Speak to a Business Sales Expert

 

We offer a free consultation and valuation on a no-obligation basis.

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Call us on 07725644913 to have all your questions about selling a business answered by a business transfer expert. 

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