A south coast legal firm is working its way through a surge of instructions as business owners and directors race to beat an imminent tax deadline.

Company law experts at Ellis Jones Solicitors say they are navigating a heightened case load ahead of the next phase of Capital Gains Tax (CGT) rules going live.

From 6 April 2026, as announced by the government in its autumn 2024 Budget, there will be a further tightening of Business Asset Disposal Relief (BADR), previously Entrepreneurs’ Relief. For many years, BADR meant that the sale, disposal or transfer of ‘qualifying business assets’ such as company shares attracted a lower CGT rate of 10% on the first £1 million of gains.

A year ago, the rate went up to 14% and from this April it will rise again by another four per cent to 18%.

“The clock is ticking ever louder,” said Neil Cook, Partner & Head of Business Services at Ellis Jones.

“On £1 million of gains, you instantly lost £40,000 on a transaction that completed after 6 April 2025. The CGT due went up from £100,000, being ten per cent, to £140,000, equating to 14%. In just a few weeks’ time there will be another cliff edge. Instead of £140,000, you will have to pay £180,000, reflecting the 18% rate. That’s a whopping £80,000 extra in tax compared with what you would have paid before April 2025.”

Neil said the phased reduction of BADR continues to be a headache for many business owners and directors looking to exit through a sale.

“In the run-up to last April, we were inundated with enquiries and instructions from business people right across the board desperate to see deals completed before the 14% rate came in. Now, with the 18% rate just a few weeks away, the rush has started again."

“People who may have pinned their retirement plans on the expectation of paying a certain level of CGT are going to be thousands of pounds worse off if they don’t act immediately.”

Neil said his team were busy working with clients to ensure everything is in place legally if they wish to complete a deal before 5 April to avoid the higher rate.

He added that business owners should always consult a tax expert or accountant for the best tax advice concerning CGT and all tax matters. Members of Ellis Jones’ Business Services department work from the independent law firm’s offices in Dorset and London.

As well as Neil, specialist solicitors advising and acting on business deals and CGT-related instructions are Clementine Saulnier, Wayne Spolander and Victoria Simpkin.

For more information on Ellis Jones’ Business Services, visit here.