Should UK Business Owners Sell Before April 2026?

Selling their company is the culmination of decades of hard work for many business owners. It’s the moment when they finally get to cash in on their success or move on to their next venture. But timing is everything. And right now, the clock is ticking.

A sweeping tax change is coming in April 2026 that could cost business owners tens of thousands of pounds if they delay their exit. The government is hiking Capital Gains Tax (CGT) rates for those eligible for Business Asset Disposal Relief (BADR), meaning selling sooner rather than later could be the smartest financial decision an entrepreneur makes.

Why Waiting Could Cost UK Business Owners

Simply put, the longer you hold off selling, the more tax you’ll pay. At present, the CGT rate under BADR is 14% on the first £1 million of lifetime gains. But from April 2026, it’s set to climb again to 18%. That’s nearly double what it was just two years ago.

What this means in real terms is that:

• Selling before April 2026 will have £140,000 tax
• Selling after April 2026 will have £180,000 tax

For business owners eyeing an exit, that’s an extra £40,000 to £80,000 in tax, just for waiting.

Buyers Are Also Moving Fast

Higher taxes aren’t only bad news for sellers. They create a sense of urgency among buyers, too.

Historically, mergers and acquisitions (M&A) activity surges before big tax changes, as investors scramble to lock in deals under current rules. The last quarter of 2024 registered 7,492 completed deals, an 11% jump from the previous year. And as interest rates stabilise, 2025 is shaping up to be an even stronger year for deals.

What does this mean for sellers?

More competition among buyers = better offers.

• Buyers know that after April 2026, sellers may demand higher prices to offset tax hikes. Hence they’re keen to strike deals now
• Private equity firms and corporate buyers are on the hunt for quality businesses, giving sellers more leverage in negotiations
• Well-prepared owners can secure higher valuations and flexible terms by selling in this window

Valuations Are Peaking. Don’t Miss Out

Another hidden advantage of selling now is you’re more likely to get a top-dollar offer.

When demand from buyers is high, valuations tend to rise. Businesses with strong financials and growth prospects can command premium prices when buyers are eager to invest before tax rules change.

But this window won’t last forever. After April 2026, the market could cool off as buyers adjust to the new taxes. Some may even structure deals differently to account for sellers’ diminished net proceeds, which could drag down valuations.

Planning Your Exit

Selling a business isn’t something you can rush overnight. Yet 48% of business owners shockingly don’t have an exit strategy, according to a wealth manager.

If you’re thinking of selling before April 2026, now is the time to:

• Consult a Financial Adviser – Minimise your tax liabilities with smart planning.
• Prepare for Due Diligence – Get your financials in order to speed up the sale process.
• Communicate with your Team – A smooth transition reassures buyers and employees alike.

A well-planned exit saves you money and maximises your business’s appeal to buyers, helping you walk away with the best possible deal.

Conclusion: Should You Sell Before 2026?

Given that 65% of business owners are now considering an exit, the next two years could be the best time to sell in a generation.

If you’ve been waiting for the right moment, this is it. Between rising tax rates, a booming M&A market and strong valuations, selling before April 2026 could mean:

• Paying Less Tax – Save up to £80,000 on a £1m sale.
• Securing a Higher Price – Take advantage of buyer demand.
• Exiting on Your Terms – Avoid a last-minute rush later.

Selling a business is never only about money. But when the numbers are this compelling, it’s hard to ignore.

The question isn’t "Should I sell?" but "Can I afford to wait?" Act now, or pay the price later.