.png?width=100&height=100&name=m%20(2).png "m (2)")
Did you know selling your business after April could cost you up to £80k in additional tax?
When you sell your business you pay tax on the profits of the sale. These tax rates are set to increase significantly from April 2025, potentially costing exiting owners tens of thousands of pounds in additional taxes.
Now until April 2025
Currently for most owners exiting, the first £1m of profits will qualify for business asset disposal relief which is charged at 10%. Anything over £1m will then be charged at the higher capital gains tax rate of 24%.
After April 2025
The rate of Business Asset Disposal Relief is set to increase to 14% in April 2025 before going up to 18% in April 2026. Effectively this means that selling your business after April next year will cost you an additional £40k in tax and selling after April 2026 will cost you £80k in total more.