In 2024, the main Capital Gains Tax (CGT) rates increased for disposals made on or after 30 October 2024—now 18% and 24%. On top of that, the Business Asset Disposal Relief (BADR) rate will rise from 10% to 14% on 6 April 2025, with another increase to 18% planned for 6 April 2026.

This means that if you’re selling a BADR-qualifying asset, timing is key—a poorly timed sale could result in a higher CGT bill.

What’s changing?

• Normally, for CGT purposes, the disposal date is when you enter into a contract, not when the sale is completed.
• New rules prevent using contracts or elections to lock in lower CGT rates when selling assets, exchanging shares, or reorganising a business.

If you’re planning to sell a business asset and want to make sure you don’t pay more tax than necessary, get in touch—we can help you navigate these changes and avoid any pitfalls.