The Autumn Budget has brought changes for business owners, but if you're considering selling, there's still plenty of reason to look ahead with confidence. The key is understanding your options and giving yourself time to prepare.
For many owners, selling a business is the culmination of years, sometimes decades, of hard work. So it's understandable that changes to tax and the wider economy can raise questions about when to sell and what a business might be worth.
Yesterday's Budget provided some useful clarity, alongside a few changes worth considering.
Capital Gains Tax: Some welcome certainty
One positive is that the main Capital Gains Tax rates remain unchanged.
However, the government announced a change to Business Asset Disposal Relief (BADR), which allows qualifying business owners to pay a reduced rate of Capital Gains Tax when they sell.
From 6 April 2027, the lifetime limit for gains eligible for BADR will fall from £1 million to £500,000. The reduced tax rate remains 18%.
While this will affect some sellers, the Treasury estimates that around three-quarters of people claiming the relief will still benefit on their entire qualifying gain.
For owners considering a sale, it's another reason to understand the potential tax implications well in advance, rather than leaving everything until a buyer is found.
New incentives for entrepreneurs
The Budget also introduced plans for a new Founders' Relief, designed to encourage investment in growing UK businesses.
From April 2027, qualifying founders of high-growth, innovative companies will be eligible for a 10% Capital Gains Tax rate on up to £10 million of lifetime gains.
The detailed eligibility rules are still being developed, so this won't apply to every business owner. Nevertheless, it demonstrates a commitment to encouraging entrepreneurship and supporting the growth of UK businesses.
Positive news for the high street
There was also encouraging news for businesses in retail, hospitality and leisure.
From April 2027, the government plans to increase the Small Business Rates Relief thresholds for qualifying properties in England.
According to the Treasury, around 70,000 additional high street businesses will no longer pay business rates, while qualifying businesses will benefit from measures designed to limit increases over the following two years.
For some businesses, reduced overheads could improve profitability and create more room for investment.
And profitability matters when it comes to selling. Buyers want to understand not just what a business earns today, but how well it is positioned for the future.
A good time to understand what your business is worth
Perhaps the most useful lesson from this Budget is that preparation matters.
A successful business sale involves much more than agreeing a price. Finding the right buyer, demonstrating sustainable profits and navigating the transaction all take time.
Tax changes are one consideration, but they shouldn't be the only reason to sell.
Whether retirement is approaching, you're ready for a new challenge or you're simply curious about your options, understanding your business's value is a sensible first step.
The Budget may have changed some of the rules, but it hasn't changed the value of building a good business.
And for owners who have spent years doing exactly that, there are still opportunities to achieve a successful exit.
Thinking about selling your business?
At Intelligent Business Partners, we help owners understand what their businesses might be worth, prepare for sale and find the right buyer.
If you're considering your next move, start with our free Business Valuation Calculator.
No jargon. No pressure to sell. Just clear, useful advice.
Tax treatment depends on individual circumstances. The measures discussed were announced in the October 2026 Budget, and some remain subject to legislation or consultation. Seek advice from a qualified tax professional before making decisions about a sale.