Tax changes outlined in the 2024 Autumn Budget mark an important shift for those planning to buy or sell business assets in the UK. Right now, sellers benefit from Business Asset Disposal Relief, which applies a 10% Capital Gains Tax rate with a maximum £1 million lifetime cap. This can help sellers save as much as £100,000. Starting in April 2025, this rate rises to 14% followed by an even steeper rise to 18% in 2026.
With upcoming shifts on the horizon now might be the perfect moment to look into businesses to buy and sell in the UK. At sellanybiz, we guide entrepreneurs through the often tricky world of trading business opportunities across various industries. Whether you are exploring buying and selling property businesses or venturing into different fields, our UAE-based team offers expert help to clients in the UK, USA, and UAE. New tax rules higher National Insurance contributions, and rising minimum wage levels underline why careful planning is crucial for anyone thinking about selling a business soon.
What the 2025 UK Business Sales Market Looks Like
Tax changes from the Autumn Budget are driving big changes in the UK business sales market in 2025. A recent survey shows 38% of business owners plan to sell sooner than they intended. Many entrepreneurs are speeding up their exit plans because of the recent overhaul in tax policies.
Taxes on capital gains have seen a big increase. The lower capital gains tax rate went up from 10% to 18%, which is an 80% jump. Meanwhile, the higher rate increased from 20% to 24%. A business with a value of £3 million feels this change in real terms. Before April 2025, the capital gains tax amount owed would be £500,000. Between April 2025 and 2026, it grows to £620,000. After April 2026, it increases again to £660,000.
Smart business strategies for buying and selling now often include tax-related planning. This is true in the property trade where non-residential Capital Gains Tax rates have gone up to 18% for the basic rate and 24% for the higher rate. Even so, the best way to boost your business’s sale value is to focus on improving its quality rather than trying to reduce taxes.
Steps to Get Your Business Ready to Sell in the UK
Getting your business ready to sell needs careful planning and focused upgrades in different areas. At sellanybiz, we’ve helped many business owners navigate this important step within the UK, UAE, and USA markets.
Getting finances ready: Solid financial preparation is critical when selling a business. Keep your financial records current and accurate, like balance sheets, income statements, and cash flow reports. Buyers will examine these to evaluate how healthy your business is and how much potential it has to grow. Also, you should take time to analyze your profitability by looking at gross profit margins and operating expenses. This helps to pinpoint areas where you can make the business better.
Sorting out legal matters: Legal preparation is just as crucial. Gather all key documents like company registration papers, contracts intellectual property records, and compliance paperwork. Make sure to settle any unresolved legal issues since these could turn off buyers or lower the selling price during deals.
When it comes to figuring out the business’s value, there are various ways to approach it:
- Valuing assets involves looking at both physical and intangible ones.
- The market value approach compares your business to others like it.
- The income valuation method examines profits and future growth potential.
Hiring professional valuation experts can give you clear insights and boost your confidence during negotiations.
Making operations better can raise the value of your business a lot. Simplify tasks, work faster, and write down clear steps in SOPs (standard operating procedures). These changes highlight strong operations and make it easier for new owners to take over.
To find the best buyer think about hiring a business broker. They can promote your business and still keep things private. Brokers charge between 2% to 12% of the sale, but their skills can help locate serious buyers.
At sellanybiz, we help UK business owners find genuine buyers looking to explore opportunities to buy or sell businesses. Our experience in the UK businesses-for-sale market allows us to simplify every stage, from getting ready to closing the deal.
Steps to Sell a Business
Selling your business means following a clear set of steps that demand attention to detail. At sellanybiz, we assist clients in managing this complex journey in the UAE, UK, and USA markets.
Start by putting together your professional team. You need an accountant, a solicitor, and maybe even a business broker. Brokers tend to take a cut of the sale charging somewhere between 1% and 10% of what your business sells for. Legal fees can reach at least 1% of the sale price, while accountancy charges might be as high as £5,000, depending on how big your business is.
Make sure to use a non-disclosure agreement (NDA) before you share any private details. This document legally binds potential buyers stopping them from misusing your business info or contacting your customers or staff without your permission.
Next, finalize the Heads of Terms (HoT) with the buyer you have in mind. This document, while not enforceable by law apart from exclusivity and confidentiality terms, lays out the main details. It covers things like the price how payments will work, and the deal’s timeline. Buyers are often given an exclusivity window of three to six months to look into everything .
Once that’s done due diligence starts. During this stage, buyers check every part of your business. They look at:
· Your financial reports and future forecasts
· The company’s structure and important papers
· What assets and debts you have
· Agreements for contracts and business deals
· Information about employees
· Property-related data
· Intellectual property rights
Once due diligence is completed, your lawyer will assist in negotiating the Business/Asset Purchase Agreement or Share Purchase Agreement. This binding document includes warranties, indemnities, liability limitations, and possible price adjustments.
Conclusion
Timing now has a big role in helping you get the most out of your sale. Business Asset Disposal Relief continues to provide the helpful 10% rate until April 2025. Sellers could save a lot compared to taxes owed later. This chance calls for quick decisions instead of delaying too much.
Sellanybiz knows these challenges well. Our team helps business owners in the UK, UAE, and USA giving personalized support at every step of the sales process. We assist with financial prep, handle legal papers, estimate business value, and connect you with serious buyers. Our detailed method covers everything involved in selling your business.
Current tax benefits won’t last forever. Taking quick action with expert advice can help you handle these changes and get the most value out of your business in today’s fast-changing market.
