Happy New Year. We are now in January 2026. The festive break is over, and for many business owners in Crawley, thoughts are turning to the year ahead.

For some of you, that thought is: "Is this the year I finally sell up and retire?"

If you are planning to exit your business soon, you need to be aware of the changes announced in the November 2025 Budget. A significant change to Capital Gains Tax is scheduled to take effect from 6th April 2026, and it could directly impact the net amount you walk away with.

We are talking about the scheduled increase in Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs' Relief.

In simple English: under current legislation, if you sell your business on or after April 6th this year, the taxman is set to take a significantly bigger slice of your life's work.

Here is what local business owners need to know about the "Exit Tax" hike.

The Bad News. The Rate is Scheduled to Rise (Again)

For years, BADR was the jewel in the crown for business owners. It allowed you to pay just 10% Capital Gains Tax on the first £1 million of profit when you sold your business.

Those days are gone.

• In April 2025, the rate rose from 10% to 14%.
• From 6th April 2026, the rate is scheduled to rise again to 18%.

While future budgets could technically alter this, the current legislative path is clear. The gap between this relief and the standard Capital Gains Tax rate is shrinking fast.

What Does This Mean in Real Money?

Let's look at a realistic example for a business owner in Manor Royal or Horsham looking to sell their company for a £1 million qualifying gain.

• Disposal BEFORE 6th April 2026:
  
  • Tax Rate: 14%
  • Tax Bill: £140,000
• Disposal ON/AFTER 6th April 2026:
  
  • Tax Rate: 18%
  • Tax Bill: £180,000

The Potential Cost of Waiting: £40,000.

That is £40,000 of your hard-earned retirement fund that could go straight to the Treasury instead of your bank account, simply because the disposal date fell a few weeks too late.

The Date of Disposal Trap

You might be thinking: "Okay, I'll just quickly sign a contract now but get paid later."

This is where you need to be technically precise. For Capital Gains Tax purposes, the "date of disposal" is usually the date unconditional contracts are exchanged, not necessarily the date of completion or when the cash hits your bank.

If you exchange contracts unconditionally before 6th April 2026, you generally lock in the tax rules of the 2025/26 tax year (the 14% rate).

However, be careful:

1. Conditional Contracts: If your contract is conditional (e.g., subject to regulatory approval), the tax point may be delayed until that condition is satisfied.
2. Anti-Forestalling Rules: HMRC has rules to prevent artificial contract dates designed solely to secure a lower tax rate.

This is not a DIY job. You need an accountant and a solicitor to ensure your "date of disposal" genuinely falls in the correct tax year.

The Crawley Context for Retiring Directors & MVLs

This doesn't just affect people selling to a third party. It affects anyone closing a solvent company to retire.

If you have retained profits of over £25,000, you cannot simply dissolve your company informally without tax consequences. If you do, those distributions are taxed as income (dividends) at rates up to ~39%.

To secure the lower Capital Gains Tax rate (BADR), you must use a formal process called a Members' Voluntary Liquidation (MVL).

• The Strategy: By appointing a liquidator and distributing the assets via an MVL before the April deadline, you can secure the 14% rate on your lifetime's savings.
• The Risk: If the distribution happens after 6th April 2026, that rate jumps to 18%.

Your Window is Closing

We are in January 2026. You have roughly 12 weeks before the new tax year begins.

Selling a business or organising a formal liquidation takes time. If you are sitting on the fence, you need to act now.

At Curve Accountancy, we are already working with several local clients to facilitate their exits before the April deadline. We can help you:

1. Calculate your exact tax position.
2. Liaise with liquidators for a swift MVL.
3. Work with your solicitors to ensure the contract exchange date secures the relief you need.

Don't let a delay cost you an extra 4% of your legacy.

Get in touch with Curve today