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Capital Gains Tax has increased – How will this impact you?

As was widely predicted, the Chancellor introduced an immediate rise in Capital Gains Tax (CGT) in the Autumn Budget – with the basic rate rising to 18 per cent and the higher rate rising to 24 per cent.

This was compounded by a staggered rise in Business Asset Disposal Relief (BADR), increasing in April 2025 to 14 per cent and again in April 2027 to 18 per cent.

For commercial property owners planning to sell, there was little to no time to plan around a CGT rise, but a steady rise in BADR rates allows for more wiggle room.

This means we are likely to see a flurry of commercial property sales in the coming months before BADR increases and tax liabilities on qualifying gains rise.

Here’s how to get prepared.

Getting your property ready to sell

If you are planning to bring your commercial property sale forward to optimise your CGT liabilities, it is important that you take steps to prepare the asset for sale.

This is particularly crucial if your property has increased in value and you are likely to have made a taxable gain.

This can be done through:

Early advice – Consult with specialist legal and financial advisers as early as possible to identify any potential challenges.
Paperwork – Gather all relevant legal documents, including the title deed and evidence of planning permission, as well as any tenancy agreements.
Resolve disputes – Unresolved legal matters can turn buyers away or slow down the sale.
Due diligence – Conduct pre-sale checks and put together a seller’s pack to help the buyer more efficiently check the property.

These steps are particularly important if your property is tenanted, as sales are a potential point of contention with tenants if not handled correctly.

Looking to sell your commercial property? Contact our specialist team today to discuss your needs.