Timing of Disposals and Elections for Capital Gains Tax

With recent changes to Capital Gains Tax (CGT) rates and further increases on the horizon, careful planning has never been more important. Investors, business owners, and individuals looking to dispose of assets should be aware of the impact that timing can have on their tax liabilities. In particular, the adjustments to Business Asset Disposal Relief (BADR) rates mean that delaying or mistiming a disposal could result in a significantly higher tax bill.

Understanding the latest CGT rate changes is essential for making informed financial decisions. Below, we break down the key updates and their potential impact on taxpayers.

Key CGT Rate Changes 

• From 30 October 2024 – Main CGT rates increased to 18% and 24%.
• From 6 April 2025 – BADR gains tax rate rises from 10% to 14%.
• From 6 April 2026 – BADR rate further increases to 18%.

These changes mean that mistimed disposals could lead to significantly higher tax liabilities. For those looking to qualify for BADR, understanding the timing of disposals is crucial.

Act Now to Avoid Higher Tax Bills

If you're planning a BADR-qualifying disposal, acting now could save you thousands in unnecessary tax. Contact our tax experts at tax@teamjs.co.uk for tailored advice on how to minimise your tax liabilities and navigate these changes effectively.