Succession Gap
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The timing

The succession gap in the UK: why owners sell, and when

Updated

An owner without a successor has three exits: a trade sale, a sale to the managers or the staff, or closing. Tax sets the timing of each, and two of the rules moved in 2025 and 2026.

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What changed

Business Asset Disposal Relief was 10% on disposals to 5 April 2025, 14% in the year to 5 April 2026 and is 18% from 6 April 2026, the same as the basic rate of Capital Gains Tax.

Source: GOV.UK: Business Asset Disposal Relief, eligibility

The 100% rate of Inheritance Tax Business Relief was capped from April 2026, which changes the sum for an owner who would otherwise hold on and pass the business on.

Source: GOV.UK: agricultural and business property relief reforms

The routes that stay

A qualifying sale to an employee ownership trust can be fully relieved from Capital Gains Tax.

Source: HMRC Capital Gains Manual CG67800: employee-ownership trusts

Business Asset Disposal Relief still needs 2 years of ownership and, in a company, at least 5% of the votes and economic rights, with a £1 million lifetime limit.

Source: GOV.UK: Business Asset Disposal Relief, eligibility

This page is information only. It is not tax or legal advice: an owner should take advice on their own position.

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Sources

This site's own dataset, every figure quoted from its source and dated:

  • The UK Owner Exit Tax Rules carries 7 published figures read from 3 sources' own pages, from 5 to 100 percent, read 28 October 2026.
  1. GOV.UK: Business Asset Disposal Relief, eligibility
  2. GOV.UK: Capital Gains Tax rates
  3. GOV.UK: Business Relief for Inheritance Tax
  4. Taxation of Chargeable Gains Act 1992, Part V Chapter 3
  5. HMRC Capital Gains Manual CG67800: employee-ownership trusts
  6. GOV.UK: agricultural and business property relief reforms
  7. Companies House data products
  8. Companies House Public Data API: officer summary
  9. Companies House PSC snapshot download
  10. Companies House free company data product
  11. Companies House: SIC codes
  12. Companies House advanced company search
  13. ONS: five facts about older people at work (2016)
  14. Small Business Survey 2025: businesses with employees
  15. Nomis: UK Business Counts

Tell us what you want to buy.

The kind of business, the area, the price range and timing. Joseph Ellul reads it himself and replies directly. Free, no obligation.

Send my brief
Send my brief