October Budget: What Could It Mean for Business Sellers and Business Asset Disposal Relief (BADR)?

For many business owners, the anticipated Chancellor’s Budget in October will have them watching and waiting for the confirmed changes to Capital Gains Tax and Business Asset Disposal Relief (BADR). So far, there have been no official changes made, but there is ongoing speculation that, when it comes to the review of tax reliefs, changes could be made to balance public finances. 

Business Asset Disposal Relief (BADR), allows businesses that qualify to pay a reduced rate of Capital Gains Tax when they are selling their business (subject to a lifetime limit of £1 million). 

For business owners who are currently considering selling their business, any changes made in the future budget could have a huge impact on their exit planning. With further changes to Capital Gains Tax, lifetime limits and BADR eligibility in the pipeline – the amount that sellers retain from a transaction could significantly change. In turn this has promoted many business owners to review their succession and sale strategies well in advance. 

Although the upcoming changes to Business Asset Disposal Relief (BADR) mean time for action is now becoming limited, it is not necessarily too late to explore your options. Whilst business owners may be ‘cutting it fine’ ahead of the October changes, there may still be steps that can be taken to help maximise available reliefs and achieve the best possible outcomes.

At Moore & Tibbits Solicitors, our experienced team can work alongside your accountants and advisers to review your circumstances, explore all available avenues, and help guide your business through the process with confidence.

If you are considering selling your business or would like advice on succession planning, contact Moore & Tibbits Solicitors today to discuss your options with our experienced team. Just call us on 01926 491181 or email: TimO@moore-tibbits.co.uk or OliverH@moore-tibbits.co.uk.