If you’re a UK business owner, you will already pay more tax when you exit, due to the latest Budget.
The increase to capital gains tax on the sale of business assets is immediate → rising from 20% to 24%.
BUT
Changes to the tax relief you receive – Business Asset Disposal Relief (BADR) – will not come into force until April 2025.
The threshold for receiving tax relief on the sale of shares remains at £1M.
So right now, business owners only pay 10% capital gains tax on the first £1M of exit cash.
Next April that rises to 14% and in April 2026, that increases again to 18%.
That will focus the minds of business owners thinking about an exit in the next couple of years – and the steps they can take, to be on the right side of these changes…
#exitlaunchpad #uktax #ukbusiness