At present, provided certain conditions are met, you can sell your business and pay a maximum of 10% capital gains tax on the first £1m of the sales proceeds.
This will increase to 14% from 6 April 2025 and then rise to 18% from 6 April 2026.
For a business being sold for £1 million – that is an extra £80,000 in tax if you sell after April 2026.
There is, therefore, a clear window to save tax of 4% to 8% by selling your business before 5 April 2025 and 2026.
In other words – there are just three months to maximise the currently favourable rate!
This change also applies to owners of furnished holiday lets that meet qualifying conditions and exit the sector. The deadline for ceasing your business is 5 April 2025. You can have an extra three years to sell the property – but the main point is that your furnished holiday-let trade must cease to operate by 5 April 2025.
As always, you should never let the tax tail wag the dog – but if you have already made your decision to sell your business or holiday letting business, then speed is of the essence to ensure that you meet the deadline.
If you wish to discuss your specific requirements further, please get in touch with your usual Bevan Buckland adviser or send an email to mail@bevanbuckland.co.uk
