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If you are thinking about selling your business, timing could be everything.

Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief, helps business owners reduce their Capital Gains Tax (CGT) liability when selling qualifying assets.

However, with adjustments to BADR coming in April 2025, it is important to make plans for an exit strategy sooner rather than later.

Current BADR rules and the upcoming change

BADR currently allows eligible sellers to pay a reduced CGT rate of 10 per cent on gains up to £1 million over their lifetime.

This is a substantial saving compared to the standard CGT rate of up to 24 per cent.

However, from April 2025, this preferential rate rises to 14 per cent, and from April 2026, it increases again to 18 per cent.

So, if you are a business owners considering a sale, should you bring forward your plans to lock in the lower tax rate?

Consider your options before a rushed sale

While selling before the rate rise may seem like a straightforward decision, there are other factors to consider:

• Is the market favourable?
• Is your business in the best possible position to attract buyers?
• Does the timing coincide with your personal financial goals?

Anti-forestalling rules also mean that certain transactions, such as share reorganisations, loan notes or sales to connected parties, could be caught under the new rates.

If you have structured a sale or disposal in recent years, you may need to review your position to avoid unexpected tax liabilities.

With the deadline fast approaching, you should act immediately.

Speak with our experts today for exit strategies and advice on the reliefs available to you.

From 6 April 2025, changes to employer National Insurance Contributions (NICs) will take effect, increasing payroll costs for many businesses.

If you employ staff, it is advisable to prepare now for how these changes will impact you financially.

Here are the key numbers to keep in mind:

• Lower NICs threshold – Employers will start paying NICs at £5,000, down from £9,100.
• Higher NICs rate – The secondary Class 1 NICs rate will rise from 13.8 per cent to 15 per cent, increasing employer costs.
• Larger Employment Allowance – For eligible businesses, this will increase from £5,000 to £10,500, more than doubling the relief on their NICs liabilities.
• No more £100,000 cap – More businesses will now be able to claim the Employment Allowance, as the cap is being removed.

With these changes approaching, you should assess your payroll costs and plan to manage the financial impact on your business.

How will this affect your business?

Despite the Employment Allowance increase and the removal of the £100,000 cap, many businesses will feel the pinch in April. The changes are set to cause:

• Increased employment costs – The combination of a lower threshold and higher NICs rate means many employers will pay more.
• Greater strain on cash flow – Higher NICs liabilities may require businesses to adjust payroll budgets to manage rising costs.
• Limited relief for some businesses – While the increased Employment Allowance will help, it may not fully offset the additional NICs for employers with larger payrolls.

Understanding these impacts now can help you adjust your financial planning and ensure your business is prepared for the changes ahead.

Do not let these changes catch you off-guard. Contact us today for advice on financial forecasting, payroll planning, and exploring tax efficiencies.

As the end of the tax year approaches, it is a good time to review your personal tax position and ensure you are making the most of available allowances.

Unlike company tax planning, which can take place throughout the year, personal tax is closely tied to the tax year-end on 5 April.

This makes early planning essential to avoid missed opportunities or unexpected tax liabilities.

Meeting with your accountant before key deadlines allows you to review your financial position and act on advice where needed.

The discussion will typically cover:

• Tax planning – Reviewing ways to manage your tax liabilities efficiently.
• Spending and saving plans – Ensuring your personal spending and use of assets align with your financial goals.
• Opportunities and risks – Identifying areas that may need attention before the tax year-end.

Having these conversations now will give you confidence and peace of mind that your tax affairs are in order before 5 April.

Key benefits of meeting your accountant before year-end

A pre-year-end meeting allows you to take a proactive approach rather than reacting to financial issues after they arise.

By reviewing your tax position, allowances, and financial commitments in advance, you can make changes that may not be possible once deadlines have passed.

Small adjustments ahead of key dates – whether for tax efficiency or future planning – can put you in a stronger financial position.

Exploring your tax relief options ahead of year-end

Meeting with your accountant ahead of deadlines gives you the chance to discuss tax-saving opportunities, including:

• Maximising personal allowances – Ensuring you make full use of your Income Tax personal allowance, savings allowance, and dividend allowance.
• Making pension contributions – Reviewing whether additional pension contributions before 5 April could reduce your tax bill.
• Using capital gains tax allowances – If you are planning to dispose of assets, considering timing to make the most of annual exemptions.
• Gift planning – Taking advantage of Inheritance Tax exemptions by making tax-efficient gifts.
• Planning for dividend and investment income – Ensuring your investments are structured in a tax-efficient way before the tax year-end.

By reviewing these tax relief options now, you can take advantage of available allowances and ensure you are in the best possible position for the new tax year.

Speak to us today to make sure you are fully prepared for your tax year-end.

Upcoming changes to Inheritance Tax (IHT) will be phased in over the next two years.

With property values rising and the IHT nil-rate thresholds remaining frozen until 2030, more estates will face unexpected tax bills if they fail to plan accordingly.

While two years may seem like plenty of time to prepare, effective estate planning requires careful consideration and proactive action sooner rather than later.

• From April 2025 – A new residence-based system will replace the existing domicile regime. This change means that individuals who have lived in the UK for at least 10 of the last 20 years will be liable for IHT on their worldwide assets. Non-UK residents may still face IHT liabilities for up to 10 years after leaving the country.
• From April 2026 – Agricultural and Business Property Relief (APR and BPR) will be capped. From this date, 100 per cent relief will only apply to the first £1 million of eligible assets in an individual’s estate. Anything above this threshold will incur an IHT charge of 20 per cent. This change will have significant implications for family-run businesses and farming families.
• From April 2027 – Unspent pension funds, previously exempt from IHT, will become taxable. Inherited pension pots will be included in estate calculations, potentially pushing more families over the threshold, particularly as they remain frozen.

If you are unsure whether these changes will impact your estate planning, seek professional advice to help mitigate potential IHT liabilities and ensure your family assets remain protected.

Our experienced team can help you review your assets and pension arrangements, explore practical gifting options, and consider trust structures that suit your family’s needs.

Contact our team today for assistance minimising your IHT liabilities.