Prior to 11 March 2020, business owners could sell multiple, qualifying businesses during their lifetime, and as long as the total chargeable gains did not exceed £10m, a reduced rate of Capital Gains Tax of just 10% would apply.

Since budget day, 11 March 2020, this lifetime allowance has been reduced to £1m.

Business owners who are contemplating a sale of their business may need to rethink their disposal strategies as this change could potentially double the amount of CGT payable on their sale.

If you would like to discuss this article in more depth, please contact DSC Accountants today.