Budget changes put business sales and property investment in focus

While the Budget contained few major surprises, some of the more targeted changes could have a significant impact on business owners, landlords and property investors.

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For business owners, one of the most notable announcements was the reduction in the lifetime limit for Business Asset Disposal Relief (BADR) from £1 million to £500,000 from April 2027. Qualifying disposals will continue to benefit from an 18% rate of Capital Gains Tax, rather than the standard 24%.

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Alongside this, the Government has announced a new Founders’ Relief, offering a 10% CGT rate on up to £10 million of lifetime gains for qualifying founders of high-growth businesses.

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Taken together, the changes create quite different outcomes depending on the nature of the business being sold. For business owners considering a future sale, incorporation, succession or transfer of wealth to the next generation, it will be increasingly important to consider CGT and Inheritance Tax as part of the wider planning rather than in isolation.

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Property investors are also facing a higher tax burden. From April 2027, the rates applying to property income will rise to 24%, 44% and 49%.

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For landlords, particularly those with larger portfolios, this provides another reason to review how property is held and whether existing ownership structures remain appropriate. The tax position is only one part of that assessment, and any restructuring needs to be considered carefully alongside the potential CGT, SDLT and wider commercial implications.

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At BHP, we regularly advise individuals, business owners and property investors on CGT, SDLT, Inheritance Tax and the tax implications of property and business structures. If any of the Budget changes have prompted you to review your existing arrangements or future plans, please do get in touch.