Time is running out for BADR - Rachel from Accounts wants your money

As part of the 2024 Autumn Budget, the Government as anticipated announced changes to the rate of Business Asset Disposal Relief("BADR").

In the lead up to the budget and also the end of the 2024 / 2025 tax year, our MVL Team at Frost Group were extremely busy. In March 2025 we moved 97 MVL clients into liquidation and we hope they were satisfied with the service levels provided. Our Trustpilot reviews do in fact reflect they were.

BADR is a valuable relief for business owners when they sell or closedown their businesses. We have helped many clients, who feared the new Labour Government had set their sights on abolishing the relief outright.

Luckily, for now, the Government did not abolish this tax relief, but have instead stated it will be reduced gradually "to allow business owners time to adjust to the changes".

These changes are for disposals made on or after 6 April 2025, gains eligible for BADR will be taxed at 14% and from 6 April 2026 gains eligible for BADR will be taxed at 18%. This means that, from April 2026, BADR relief will be in line with the lower main rate of CGT, which rose from 10% to 18% in the Budget. There was no change to the £1 million lifetime limit.

Our advice is to act soon if you would like to take advantage of BADR while the benefits are still available, Rachel from Accounts needs your money. Please contact either Kelly Walford or Julie Frost on 0345 260 0101.

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