For business owners, the tax implications of selling a company changed in April 2026, and planning transactions has changed with this. Business Asset Disposal Relief, which had already risen once, increased again to 18% from 6 April 2026. On a £1m qualifying gain that lifts the tax bill from £140,000 to £180,000 and cuts the maximum relief saving to £60,000.

The same period brought a second change that matters for owners holding their business as part of their estate. From April 2026, Business and Agricultural Property Relief is capped at £1m of full relief, with 50% relief above that level, and shares listed on AIM move from 100% to 50% relief. The House of Commons Library sets out the detail.

The window to act ahead of these changes has closed. Forestalling rules meant that a contract signed before the deadline only secured the old rate if it genuinely completed, so the lever now is not timing a signature but being ready to transact on the new terms. It is worth remembering how behaviour responded last time, when UK M&A in the first half of 2025 was the busiest in over 15 years as sellers completed ahead of the previous round of tax changes.

For founders, the practical priorities are eligibility and readiness. Confirm the two year ownership and employment tests, understand how the relief cap interacts with any AIM holdings, and prepare clean financials and diligence materials so a process can move quickly. For acquirers, a seller no longer racing to meet a deadline should make for better quality processes.

We expect deal motivation to rest on genuine readiness rather than calendar pressure for the rest of 2026. The owners who prepare early will keep the most options open.

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