Rachel Reeves to ransack Brits hit by ‘tens of thousands’ in bills
An expert has warned of huge bills as a result of delaying vital actions.
Brits have been warned that they face bills of tens of thousands of pounds as a result of one of Rachel Reeves’s tax hikes. The rate of business asset disposal relief (BADR), which reduces capital gains tax for the owners of firms selling up, will increase from 14% to 18%. James Howell, Managing Director at corporate law specialists Rubric Law, argues that, while this may look modest on paper, the reality for entrepreneurs is very different. For those selling companies valued around the £1million mark, delays of even a few weeks could mean a huge amount of additional tax exposure once the new rate comes into force, he warns.
Mr Howell said: “One of the biggest misconceptions sellers have is that a business sale is simply a negotiation on price. In reality, timelines are determined far more by the mechanics of the deal than by the number on the headline. Most delays have little to do with how much a buyer is offering, and everything to do with how well-prepared the business is behind the scenes.”
His firm consistently sees transactions stall due to property-related complications, the expert added, as issues such as outdated leases, missing landlord consents, unclear rights of occupation, or historic defects in documentation add significant time to the process.
“These matters are usually capable of being resolved, but rarely quickly, and almost never without cost or effort,” Mr Howell said.
Financial due diligence is another common “pressure point”, as if a business has incomplete, inconsistent, or poorly organised accounts, buyers will naturally raise more questions.
“This prolongs the transaction and often results in tighter warranties, indemnities, or even price renegotiations,” the specialist said.
“First-time sellers are frequently surprised by how much time is lost assembling information that should already exist in a sale-ready format.”
Mr Howell advised that as a rule of thumb, business owners planning to sell up should begin preparing three to six months before going to market.
“This buffer gives sellers more control over the pace of a transaction,” he said.
“In the current environment, control matters, particularly for those looking to complete before potential tax changes take effect in April 2026.”
“Recurring blockers include disorganised accounts, gaps in compliance, employment and contract irregularities, and unresolved property issues.
“The time required to address these challenges, even if only a matter of weeks, can materially impact when completion occurs and could, in some cases, push a seller into a less favourable tax position.”
Mr Howell added that owners of firms considering an exit within the next 12 to 18 months, an “up-to-date valuation and properly organised financial and operational records are no longer ‘nice to haves’; they are essential”.
“Being ready to move decisively when a serious buyer arrives doesn’t just make the process smoother, it can meaningfully influence the price achieved and the tax ultimately paid,” he concluded.
