Entrepreneurs could lose thousands of pounds if they delay their exit beyond April 2026, warns The CFO Centre.
Business owners planning to sell their companies are being urged to act now ahead of major tax changes that will make exiting far less lucrative from April 2026.
The CFO Centre, which provides part-time or ‘fractional’ CFOs to over 800 UK businesses, is warning that Business Asset Disposal Relief (BADR) – the successor to Entrepreneurs’ Relief – is becoming increasingly less generous, with a rising Capital Gains Tax (CGT) rate that could significantly reduce the proceeds business owners keep after a sale.
Currently, eligible business owners pay 14% CGT on the first £1 million of lifetime gains from April 2025, but that rate is set to rise again to 18% in April 2026, while the standard CGT rate on remaining gains is 24%.
Until recently, qualifying entrepreneurs paid just 10%, meaning that delays could cost sellers tens or even hundreds of thousands of pounds.
Sara Daw, CEO of The CFO Centre, said: “We’re seeing a growing number of business owners who are unaware of how quickly these changes will bite.
“Selling a business is not an overnight process and those who don’t start preparing now could easily miss the April 2026 deadline and lose a significant portion of their hard-earned value to tax.”
Preparing a business for sale can be complex, requiring robust financial data, accurate forecasting, clear documentation and well-organised data to satisfy buyer due diligence.
The CFO Centre helps business owners get ‘exit ready’, deploying experienced CFOs who have managed transactions from both sides of the table.
Its fractional model allows companies to bring in high-level financial expertise quickly and flexible, either to lead the entire sale preparation or to work alongside an existing finance team.
“Our CFOs know exactly what buyers look for and how to eliminate the friction points that slow deals down,” added Sara Daw. “If you’re even considering a sale in the next 18 months, now is the time to start that conversation.”
The CFO Centre works with more than 750 businesses across the UK, providing seasoned CFOs on a part-time basis to deliver strategic, financial and operational leadership.
For more information or to speak to an experienced CFO about getting your business exit ready, visit cfocentre.com.
