Should you sell your business before 06 April 2027?

The Autumn Budget 2026 announced changes to Business Asset Disposal Relief, which gives qualifying business owners a reduced rate of Capital Gains Tax (CGT) when they dispose of qualifying business assets. The rate is currently 18% compared with the 24% main rate of CGT.

For disposals made on or after 06 April 2027, the lifetime limit on qualifying gains is set to drop from £1 million to £500,000. Any relief already claimed on earlier disposals will count towards the lower limit and the 18% rate itself is not changing. 

For business owners with an exit on the horizon, the question is whether to accelerate the timetable. The lower limit could mean a significant additional tax liability on qualifying gains, creating a real incentive to act. We expect to see a surge in deal activity as business owners push to complete before the cut-off. 

If a sale was already planned for 2027, bringing it forward may make commercial sense but the danger lies in how you do it. 

The Price of Rushing 

When buyers know a seller is racing against a government deadline, the balance of power shifts. 

If a buyer uncovers an issue late in the process, they know you cannot easily walk away without missing your tax window. A reduction in the sale price could quickly outweigh any tax saving you set out to achieve. 

Tight deadlines often force sellers to accept onerous warranties, wider indemnities or unfavourable deferred terms just to get the document over the line. 

Moreover, if many owners aim for the same deadline, corporate lawyers, accountants and lenders may have limited capacity and deals could be stuck in the queue. 

Start early and complete before the cut-off, not just exchange!

Beating the April 2027 deadline without compromising on key terms comes down to early preparation. A company sale from due diligence to completion can take several months. If you want to sell before April 2027, this may be the moment to get started. 

If you think you can simply sign contracts before 06 April 2027 and complete later, think again! The Government has announced anti-forestalling rules intended to apply to certain unconditional contracts entered into before that date but completed afterwards. While the tax implications are a question for your tax adviser, the corporate reality is that, if beating the deadline is part of your strategy, aiming to exchange and complete before the cut-off date may be the safer choice. 

How can SE-Solicitors help? 

If you are thinking about selling your business, our Corporate Team would be happy to help. Please get in touch here by completing the form at the bottom of the page. 

The contents of this article are a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal or tax advice. Specific legal advice should be sought in relation to the particular facts of a given situation. 

We do not provide tax advice. For advice on the tax implications of a business sale, including whether and how you may benefit from the available reliefs, you should consult a tax adviser. If you do not have a tax adviser, we would be happy to introduce you to one.