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. BADR is a valuable relief for business owners when they sell or close down their businesses, and we had some very wealthy clients who feared the new Labour Government were going to abolish the relief outright.
Luckily the Government did not abolish this tax relief, but instead stated it will be reduced gradually "to allow business owners time to adjust to the changes". Please see below what 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.
ACT SOON If you would like to take advantage of BADR while the benefits are still available, please contact either Kelly Walford or Julie Frost on 0345 260 0101.
Our team member below will be able to help with all your questions
At Frost Group, we want to make things as easy as possible for you. That is why, if you can’t come to us, we’ll come to you. We operate face to face, nationwide meetings, wherever is most convenient for you.
Court House,
Old Police Station South Street,
Ashby de la Zouch LE65 1BR
0345 260 0101
enquiries@frostbr.co.uk
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