Planned CGT rise for October a cause of concern

Many commentators are calling on the Rt. Hon. John Healey, Chancellor of the Exchequer to pause any decision to increase the current rates of Capital Gains Tax (CGT). Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) a business (or other qualifying assets; source: Gov.UK).
Commentators are sounding the alarm, particularly as the main higher rate was increased in the 2024 budget from 20% to 24% and the annual allowance (the amount exempt from CGT) was also reduced by 50% (source: Financial Times).
The impetus for any planned rise in CGT is driven largely by Labour’s plans under the Rt. Hon. Andy Burnham’s government to live up to its promises on not penalising working people by raising income tax, VAT and National Insurance.
The implications for business owners considering a sale are clear, whilst deal volumes and values have risen over H1 2026, the likely tax costs on sale monies following a raise in CGT could be significant.
Timing matters hugely, as any change to the tax regime would likely be deferred to next April 2027. This gives a small window of opportunity for those considering a sale to act decisively ahead of any proposed changes.
Business Asset Disposal Relief should hopefully remain in place allowing those business owners with qualifying shares to pay a lesser amount of CGT, with the caveat that the relief rate increased in April 2026, and may also be subject to a further rise in 2027.
The EvolutionCBS deal team can give proactive advice, guidance and an orderly managed sale process for those business owners considering selling pre-April 2027. For those considering a sale receiving professional tax advice from a trusted advisor is crucial ahead of a sale.
This blog is for marketing purposes only and seeking independent tax advice is highly recommended.
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