Since 6 April 2026, Business Asset Disposal Relief has applied a capital gains tax rate of 18% on qualifying gains. That rate was 10% until April 2025 and 14% during the 2025/26 tax year. The lifetime limit remains £1 million. The standard higher rate of capital gains tax stands at 24%.
For founders using their full allowance, the relief now saves up to £60,000 against the standard 24% rate. That saving still matters, though it now plays a smaller part in decisions about timing.
Fortpark Group sees two practical consequences. The first is that business readiness should drive timing: a company with a credible growth plan will usually command a better price a year later than a rushed sale today.
The second concerns structure. Reinvesting some proceeds into the buyer's equity can defer tax on that portion while giving sellers a stake in future growth. Loan notes can achieve a similar deferral in some cases. Each option carries risk, since deferred value depends on the buyer's success.
Tax rules change often and every founder's position differs. Take advice from a qualified tax adviser before agreeing heads of terms, then talk to us about structures that suit your plans.
This article is general information and does not constitute tax advice.