No- Surprises- Yet

Last week’s Budget delivered what many in our sector were expecting: confirmation that there were to be no additional increases to Business Asset Disposal Relief (BADR) thus the rise from 14% to 18% will continue to be rolled out in April 2026.

But the real point is this: there were no new increases announced — yet. There is no doubt that this is a tax-raising government, actively foraging for ways to increase revenue, which makes BADR a prime candidate in my opinion.

For now, BADR remains intact. Advisers selling before next April retain access to the current 14% rate, and even beyond that, the 18% rate still offers a considerably more favourable outcome than standard CGT. However, it would be unwise to assume that this relief will remain untouched indefinitely.

Within certain policy circles, BADR has long been viewed with scepticism. The clue, perhaps, is in the name: Business Asset Disposal Relief. Depending on one’s perspective, the acronym BADR feels rather telling. Some argue it no longer serves its original purpose; others see it as overly generous; and many frame it as a relief in search of a justification. Once a relief is placed under that kind of scrutiny, history suggests it rarely becomes more generous, the direction of travel tends to be one way.

So, whilst the latest Budget brought no shocks, it also brought no guarantees. And that’s where advisers need to read between the lines.

For IFA owners considering selling, whether within the next twelve months or the next few years, this current period of stability should be viewed as an opportunity, not something to take for granted. Governments do not always signal their intentions and in my view, tax “simplification” tends to reduce allowances rather than expand them.

In short: just because BADR hasn’t been touched again yet, doesn’t mean it won’t be.

As I have said many times, preparing an IFA business for sale is not something achieved in a matter of weeks. Six to twelve months is typical, and that assumes a relatively well-organised starting point. Cultural fit testing, due-diligence readiness, Consumer Duty compliance evidence, client segmentation, none of these are tasks to be rushed if you want to maximise value.

Early movers are nearly always in the strongest position: they retain flexibility, achieve cleaner deals, and complete within their preferred time scales rather than being pushed into one through urgency.

Of course, not every adviser wants to sell. You may simply want to understand your options; or position your firm for growth or restructure for succession. The principle remains the same: planning early keeps control firmly in your hands.

If you’d like an honest, confidential discussion about where your business stands, whether you’re exploring an exit or simply assessing readiness, we’d be pleased to talk.