As we enter the 2025/26 tax year, there are a few important updates on Capital Gains Tax (CGT) and Inheritance Tax (IHT) that could impact business owners, farmers, and anyone planning to sell valuable assets. These changes could have a real impact on how much tax you pay, so it’s worth getting ahead of them now.

Capital Gains Tax (CGT)

• Most capital gains (the profit you make when selling assets) will be taxed at 18% for basic rate taxpayers and 24% for higher rate taxpayers.
• If you’re selling a business and qualify for Business Asset Disposal Relief (BADR), the CGT rate will rise from 10% to 14%. A further increase to 18% is planned from 6 April 2026.
• Timing is key when selling a business, so get in touch before making any decisions. We can help you plan the most tax-efficient approach.

Inheritance Tax (IHT) relief for business owners and farmers

• From 6 April 2026, the government is planning to change the rules for IHT relief on agricultural and business property. A consultation is currently underway, particularly around the use of trusts.
• At the moment, up to 100% relief from IHT is available on qualifying business or agricultural assets. Under the new rules, 100% relief will apply to the first £1 million, but anything above that would only get 50% relief.
• IHT relief on AIM-listed shares (and similar investments) will also drop from 100% to 50% from April 2026.

These upcoming changes could impact how you plan for the future, including passing on business or agricultural assets. Even making gifts before the deadline might not give the result you expect. If you’re unsure, we’re happy to talk through the options with you so you can make an informed decision.