When Should You Exit Your Business?

When Should You Exit Your Business?

For UK business owners eyeing an exit, recent changes in the Budget mean higher taxes upon sale are already here.

Here’s the rundown: Capital Gains Tax on business assets has already jumped from 20% to 24%, effective immediately.

HOWEVER

Adjustments to Business Asset Disposal Relief (BADR) won’t take effect until April 2025.

For now, the tax relief threshold on share sales remains at £1 million, meaning owners currently pay just 10% CGT on the first £1 million in exit proceeds.

But this won’t last forever: next April, it rises to 14%, then again to 18% in 2026.

If you’re considering an exit within the next few years, now’s the time to get strategic about staying on the right side of these changes.

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