Selling Your Business in West Sussex? Capital Gains Tax Is Rising in April 2026
If you are considering selling your business, the timing of your sale could make a real difference to how much tax you pay.
Since April 2025, the Capital Gains Tax (CGT) rate under Business Asset Disposal Relief (BADR) has risen to 14% (up from 10%). From April 2026, it is due to increase again to 18%, unless the government changes course in the meantime.
That difference is significant. On a gain of £1 million, selling before April 2026 could mean paying £40,000 less in tax compared to waiting until afterwards.
Could The Autumn Budget Change This?
The next scheduled increase, from 14% to 18%, is already legislated for April 2026.
However, the Autumn Budget (November 2025) could still bring further changes.
Governments have previously announced tax changes that take effect immediately, leaving business owners little time to adjust their plans.
There is also uncertainty surrounding whether recent increases are meeting the expected revenue, which could put pressure on the Chancellor to alter the timetable or revise the policy.
This means business owners should plan now rather than waiting for clarity.
Acting early gives you options, whether or not the Budget changes the rules.
What Business Owners In West Sussex Should Consider
For many owners in Worthing, Chichester and across the South East, selling a business is about securing retirement, succession and the value of years of effort.
With April 2026 fast approaching, it is worth thinking about:
- Timing Your Exit: Would Completing a Sale Before April 2026 Reduce Your Tax Bill?
- Alternative succession routes: Employee Ownership Trusts (EOTs) are increasingly popular and can allow sales without CGT, while rewarding employees and protecting business culture.
- Market conditions, including buyer appetite, interest rates, and sector-specific trends in the South, could impact valuations in the coming months.
- Budget flexibility: Keeping an eye on the November 2025 Budget will help avoid being caught out if the government accelerates or alters the CGT timetable.
Avoiding Pitfalls
There are rules designed to prevent sales from being structured purely to avoid new tax rates. Timing, deal structure and reliefs need to be handled carefully.
Professional advice is essential to ensure your sale is both compliant and tax-efficient.
FAQs: Capital Gains Tax and Selling a Business
What is Business Asset Disposal Relief (BADR)?
BADR allows qualifying business owners to pay a lower rate of CGT when selling their business, up to a lifetime limit of £1 million.
What is the CGT rate now (2025)?
Since April 2025, qualifying gains under BADR are taxed at 14%.
What will the CGT rate be in April 2026?
From April 2026, the BADR rate is due to rise to 18%, unless the government changes policy.
Could the Autumn Budget change the CGT rate?
Yes. Although the 18% rate is legislated for April 2026, the Chancellor could announce changes in November 2025, and some changes could take effect immediately.
Should I sell my business before April 2026?
Not always. While selling earlier could reduce your CGT liability, you should also consider your business valuation, retirement or succession plans, and whether alternatives, such as EOTs, might suit you better. Professional advice is important before making a decision.
Taking The Next Step
With April 2026 just a few months away, the window for action is narrowing.
Whether you are planning a full sale, passing the business to family, or exploring employee ownership, reviewing your options now will help protect value and secure the right outcome.
At Bennett Griffin LLP, we work with business owners across West Sussex and the South to provide clear and reassuring guidance on sales, succession and tax planning.
If you are thinking about selling your business or simply want to understand your options, our Corporate & Commercial Law team is here to provide clear and practical guidance.