Why Timing Matters: Sell Before April 2026

Big changes are coming to Business Asset Disposal Relief (BADR) — and they could cost you thousands in extra tax if you sell after April 2026. If you're thinking of selling your business, now is the time to act.

What's Changing?

From 6 April 2026, Capital Gains Tax (CGT) rates for shareholders under BADR will rise:

• Current BADR CGT rate: 14% (on the first £1m of lifetime gains)
• Pre-October 2024 rate: 10%
• Post-April 2026 rate: 18%

Example:
Selling a business for £1m:

• Sold before October 2024: £100,000 CGT
• Sold before April 2026: £140,000 CGT
• Sold after April 2026: £180,000 CGT

That's an £80,000 increase per shareholder if you delay your sale.

Why Selling Before 2026 Makes Sense

• Lock in lower CGT rates while they’re still available.
• Protect more of your sale proceeds from tax increases.
• Future tax hikes are possible — act now while the current rules still apply.

A Hot M&A Market Is on the Horizon

The market for mergers and acquisitions is expected to heat up in the run-up to April 2026:

• In 2024, 7,492 M&A deals were completed — an 11% increase from 2023.
• Stable or falling interest rates are expected to drive more deal activity in 2025.
• Sellers will want to close deals before CGT increases, creating urgency and demand.

What this means for sellers:

• Better valuations
• Faster deals
• More room to negotiate favourable terms

Higher Valuations = Bigger Paydays

In a competitive M&A market:

• Buyers compete harder for profitable businesses
• Sellers can negotiate higher prices and better terms
• Valuation multiples tend to rise with market optimism

But if you wait until after April 2026:

• Demand could drop
• Buyer enthusiasm may fade
• Sale prices could suffer

Plan for a Smooth Exit

Selling a business isn’t just about timing — it’s about preparation.

Almost half (48%) of business owners don’t have a formal exit plan in place. See our article on the best time to sell a business https://www.kaizengroup.uk/articles/when-is-the-best-time-to-sell-my-business-what-must-i-do-to-get-it-ready

To ensure a smooth transition, focus on:

• Tax planning with a professional adviser
• Risk mitigation and due diligence
• Clear communication with staff
• A structured handover process

A well-prepared succession plan increases confidence among investors and buyers, making your business more attractive.

Is Now the Right Time to Sell?

Yes — if you want to:

• Maximise your take-home cash
• Avoid higher CGT
• Exit on your own terms

With 65% of UK SME owners considering selling, you’re not alone — but waiting could cost you dearly.

Let Kaizen Help You Sell With Confidence

At Kaizen, we’ve helped many business owners prepare for and execute successful sales. We’re here to help you:

• Understand your tax position
• Prepare your business for market
• Sell smoothly and profitably

Contact us today at 01482 772261 or info@kaizengroup.uk to learn how we can support your exit strategy.

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