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). The most recent changes made by the Government have already reduced the value of the relief with the tax rate increasing from 10% to 14% in April 2025 and then to 18% from April 2026.

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. 

At Moore & Tibbits Solicitors, our experienced Commercial Company team work closely with business owners to help them prepare for a sale, manage legal due diligence, negotiate transaction documents, and ensure the process runs as smoothly as possible. Seeking legal and financial advice early, ensures that business owners place themselves in the strongest position should further tax changes be announced.

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.