CGT headlines shouldn’t freeze the exit market — they should sharpen the plan
- Jan 24
- 2 min read
By Paul Watts-Barnes
Recent coverage has reignited the “will higher Capital Gains Tax (CGT) stop people selling?” debate — including commentary on HMRC figures showing CGT receipts falling (reported as down 8.4% to around £13.6bn in 2025) as investors delay disposals.
At No.20 Berkeley Square, our view is simple: tax matters — but it shouldn’t be the tail that wags the dog. Great businesses still change hands for the same reasons they always have: strategy, succession, market timing, buyer appetite, and value creation. The winners are the owners who treat tax as a key workstream in the deal, not a reason to avoid the deal.
Why CGT noise shouldn’t deter founders or investors
1) Markets adapt faster than headlines.
When rules change (or rumours swirl), buyers and sellers adjust structure, price mechanisms, and timing — and deals still get done.
2) “Waiting it out” can cost more than it saves.
Delaying a sale for tax reasons can expose you to operational risk, sector cycles, key-person dependency, or simply missing the strongest buyer demand window.
3) Reliefs and rates are only part of the picture.
For many owner-managers, the net outcome is driven by: deal structure (shares vs assets), consideration mix (cash/earn-out/loan notes), family/estate plans, and whether reliefs apply. GOV.UK notes recent and phased changes impacting Business Asset Disposal Relief (BADR) rules and how/when rates apply, which is exactly why forward planning matters.
And professional advisers are already flagging BADR rate increases from 6 April 2026 as a planning point for owners considering an exit timetable.
The smarter response: plan the exit like a project
If you’re thinking about selling in the next 6–36 months, the best approach is not “sell or don’t sell because of CGT”. It’s:
Model scenarios early (sell now vs later; different structures; different price outcomes)
Check eligibility for reliefs and the conditions you must maintain through completion
Pressure-test deal structures (earn-outs, deferred consideration, group reorganisations)
Align tax planning with commercial reality (buyers drive terms; you plan to protect value)
This is exactly where a strong advisory team pays for itself.
Speak to the right people early — including No.20 members
If these headlines have made you pause, don’t go quiet — get advised.
At No.20 Berkeley Square, you can discuss exit planning with members who deal with these questions every day. For example, Jeff Fuge, Managing Director at Foxmain Limited, supports business owners with practical tax and accounting planning to help identify and mitigate CGT exposure as part of a wider exit strategy.
Our take
CGT changes may influence how you sell — but they shouldn’t stop you selling. The priority is protecting the value you’ve built, choosing the right timing for your goals, and structuring the deal intelligently.
If you’re considering an exit, investment, or succession plan in 2026 and beyond, come and have the conversation at No.20.
Message No.20 Berkeley Square to be introduced to the right advisers for your situation — and if CGT is on your mind, we can connect you with members such as Jeff Fuge (Foxmain Limited) to explore options and next steps.
Important: This article is general commentary, not tax advice. Always take professional advice tailored to your circumstances.
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