Surrey-based accountancy firm TWP has urged business owners looking to sell their business to act quickly ahead of the changes announced by Rachel Reeves.

In October it was revealed that the rates for Business Asset Disposal Relief (BADR) will gradually increase, reaching 14 per cent in April 2025 and matching the main lower Capital Gains Tax (CGT) rate of 18 per cent by April 2026.

It was also confirmed that the BADR lifetime allowance will remain at £1 million.

These changes create a pressing timeline for business owners looking to maximise their returns from business disposal before these rates increase.

Philip Munk, Partner at TWP encourages all business owners to assess their exit strategies and consider selling sooner rather than later to take advantage of current tax reliefs.

Philip said: “For business owners thinking about selling, you should look to act quickly. To maximise your use of the Business Asset Disposal Relief, you’ll want to sell before April 2026, if not April 2025, to take advantage of the lower rates.”

“It’s really important for business owners to prioritise planning ahead. A solid exit plan will need to be drafted alongside your plans for the operations of your business.

Delaying your exit from your business could result in missing out on substantial tax savings.

“Some of the most popular exit strategies to consider include Management Buyouts and Employee Ownership Trusts,” said Philip.

“However, each option comes with its own set of complexities and considerations, so you should seek tailored advice from your accountant to assess which is most suited to your business circumstances.”

While bringing forward your planned sale could secure the benefits of the lower BADR rates, there are other things you will also need to consider before making important decisions.

For instance, you should look at the market conditions, the readiness of your business for market entry, and how the timing aligns with your personal financial goals or retirement plans.

“An experienced financial professional can offer strategic advice on timing, tax implications, and other crucial factors to help you make the best choice for your future,” advises Philip.

For expert personalised support on maximising your business sale value, contact TWP.