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Should business owners sell now rather than risk another BADR rise?

ended 13. September 2026

Business Asset Disposal Relief has become considerably less generous in a relatively short period.

The CGT rate on qualifying gains was 10% until April 2025, increased to 14% from April 2025 and rose again to 18% from April 2026. With another Budget approaching on 28 October, business owners considering a sale may understandably wonder whether they should act sooner rather than risk further changes.

But selling a business simply because of fears about future tax rises could be an equally expensive mistake.

I'm looking for views from business owners, accountants, corporate finance specialists, tax advisers and financial planners:

  • Are concerns about further changes to BADR or CGT affecting business owners' decisions about when to sell?
  • Should an owner who is already considering an exit accelerate their plans while today's tax regime is known?
  • Or is tax a poor reason to bring forward what may be the biggest financial transaction of someone's life?
  • How much difference could another increase in BADR or CGT actually make to a typical business owner?
  • Should the more important question be whether the owner already has enough from the sale to become financially independent?
  • Are you seeing business owners take action ahead of the October Budget?

Real examples, calculations and contrasting opinions particularly welcome.

3 responses from the Newspage community

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Pro
Scott GallacherVerified
Director at Rowley Turton
Rushing to complete the sale of a business purely because of a potential tax change could be an extremely expensive mistake. For most business owners, the value of the business and the terms of the deal are likely to matter far more than trying to second-guess what the Chancellor might do.

However, if you've already decided to sell and are well advanced in the process, I think there's certainly an argument for wanting to complete before the Budget.

Business Asset Disposal Relief has already become considerably less generous, with the rate on qualifying gains rising from 10% to 14% and then to 18%. We don't know whether it will change again, but if a good deal is already on the table, completing while the current tax position is known removes one element of uncertainty.

The key distinction is between bringing forward a sale you already want to make and allowing tax speculation to drive the decision to sell in the first place.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
Many business owners fail to adequately plan for the liquidity event that selling a business brings to compensate for their years of pain and suffering. Leaving it too late could mean that you accept offers the closer you are to retirement that you previously would have not considered. Tax plays a part in planning but so should your own requirements now and in the future. Cash flow forecasting can be a useful tool here to help you determine the number you need to walk away.
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Tony SanchezVerified
Founder at Bridging Loan Directory
Tax will affect what a business owner keeps, but it should not decide on its own when they sell.

I am beginning to think more seriously about long-term financial planning, but I still enjoy running my business and am not looking for an immediate exit. Selling prematurely because of speculation about the next Budget could mean giving up future income and growth worth considerably more than the tax potentially saved.

If an owner is already financially and personally ready to leave, the certainty of today’s tax regime may reasonably influence the timing. That decision should still be based on the value and terms offered, whether the proceeds provide enough financial security and what the owner wants to do next.

For everybody else, Budget uncertainty is a reason to accelerate preparation rather than necessarily accelerate the sale: obtain a realistic valuation, improve the business and understand the personal tax and financial-planning consequences before a buyer appears.