If you are undertaking the sale of a business to a third party, you need to be aware of the increase in the rate of BADR in April 2025 and 2026. Look into accelerating the sale date to secure the higher rate without triggering the anti-avoidance rule announced in the Autumn Budget.
In addition, you can trigger qualifying gains when gains qualifying for BADR have been deferred using the enterprise investment scheme (EIS). These gains retain their qualifying status when they are revived, so you could look to make a disposal of the EIS shares ahead of 6th April 2025 or 2026. You need to make sure that the termination date has passed or you risk losing the CGT exemption on the EIS shares.
Furthermore, furnished holiday letting (FHL) landlords will no longer be able to benefit from the previous tax reliefs from the 6th April 2025. You have to start planning now to make sure you make the most of them! By stopping letting activity on or before 5th April 2025, you will have a three-year window to make disposals of previously qualifying properties and enjoy BADR. If you dispose of a FHL property on or before 5th April 2025, you will qualify for rollover relief which would work well if you are intending to get a replacement asset!
Give us a call on 01622 738165 today and we can talk you through which options make the most sense for you!