Business exit planning

BADR allows qualifying business owners to pay CGT at 18% (since April 2026) on the first £1m of lifetime gains from selling their business, instead of the standard 24% rate.

You must have been an employee or officer for at least two years and held at least 5% of shares and voting rights, and it must be a trading company.

The qualifying conditions are strict and must be met at the point of disposal — not after.

Ideally two to three years before you intend to sell.

The BADR qualifying period is two years, and holding company structures need at least 12 months to qualify for the Substantial Shareholding Exemption.

Starting early gives you the widest range of options. Starting late limits what is available.

If a holding company sells shares in a trading subsidiary — and has held at least 10% of those shares for at least 12 months — the gain may be exempt from corporation tax if the conditions are met.

This is a useful relief that is available on a business sale, but the structure must be in place before the disposal.

A share sale is often more tax-efficient for the seller because it attracts CGT (potentially with BADR) rather than corporation tax plus extraction tax.

But a buyer may prefer an asset sale for tax relief on the purchase price.

The structure of the deal significantly affects the net proceeds — we model both scenarios.

If part of the sale price is deferred or contingent on future performance, the CGT treatment depends on whether the earn-out is 'ascertainable' or 'unascertainable' at the point of sale.

The distinction affects when you pay tax and how much.

We model the earn-out structure as part of the exit planning review.

The fee depends on the size and complexity of your business.

Use the scoping form on the review page and we will show you an indicative fee range immediately.

The final fee is confirmed in writing before any work begins — no surprises.

No. We can work alongside your existing accountant.

Many of our exit planning clients keep their current accountant for compliance and use us purely for the pre-sale advisory work.