The most recent changes to Capital Gains Tax rates and Business Asset Disposal Relief (formerly known as ‘Entrepreneur’s Relief’) came into effect this April 2025, following the government's Autumn Budget, prompting many business owners across Gloucestershire and beyond to formulate an exit strategy.
The corporate team at Cheltenham's Sherbornes Solicitors has seen an influx in business owners wanting to bring forward sales prior to the changes to BADR – which saw the CGT rate on qualifying gains rise from 10 percent to 14 percent from Sunday 6 April 2025.
Following a hugely successful year in 2024, with 84 transactions completed by its corporate team across the year, in 2025 the firm has successfully completed over 36 transactions totalling £59.7 million in enterprise value already.
Since the beginning of January this year, Sherbornes' team has helped Gloucestershire businesses with everything from full business sales and purchases, to management buy-ins and purchases of own shares for exiting minority shareholders – and it is encouraging other business owners to consider their own exit strategies before rates increase again in 2026, whether that's for an imminent departure, or as part of their five to 10-year plans.
For those who are contemplating an exit within the next year, Sherbornes advises that steps should be taken sooner rather than later to prepare your business for sale; whether that's tidying up contractual arrangements, identifying potential buyers or getting clear in your mind on your ideal transaction structure — for example, a full-exit to a third party, a staged exit or a management buy-out.
Waiting too long may reduce the amount of tax relief
available, so the sooner business owners act, the more flexibility they’re
likely to have.
Matt Lennon, head of corporate at Sherbornes said: 'Following the recent change to BADR, we know that in April 2026 the rate of tax will change again and increase to 18 per cent.
'The next budget will be held in October/early November and whilst we don’t know the date yet, we expect there will soon be murmurs of further changes to the Capital Gains Tax regime and BADR.'
For more information, or to get advice on exit strategies for your business, visit sherborneslaw.co.uk.
