Oxford Office - 01865 552 925  |  Witney Office - 01993 776 476 team@themgroup.co.uk

As business advisors we understand that selling your business is not just a financial transaction – it’s a pivotal moment that requires strategic planning to secure your financial future and protect your family’s legacy. Following the Autumn 2024 budget, this planning has taken on even greater importance for business owners.

The MGroup Corporate Finance team supports business owners throughout the sale process, from initial planning to strategy and deal management. We encourage clients to seek the advice of our trusted contacts at Clifton Wealth Partnership, to ensure they are fully aware of how their personal financial wealth could be impacted by a business sale.

We asked Alan Crook, Financial Planner at Clifton Wealth Partnership, to outline the key considerations business owners planning to exit should be aware of, following the Autumn budget.

Personal Wealth & Selling a Business

The stakes are high when it comes to navigating Capital Gains Tax (CGT), mitigating Inheritance Tax (IHT), and optimising your family’s wealth both before and after the sale. Let’s take a look at the key changes:

Capital Gains Tax

The October 2024 Budget introduced changes to CGT rates, effective from 30 October 2024:

  • Basic Rate Taxpayers: CGT increased from 10% to 18%.
  • Higher Rate Taxpayers: CGT increased from 20% to 24%.

These changes apply to disposals made on or after 30 October 2024.

Business Asset Disposal Relief (BADR)

BADR remains available but with adjusted rates:

  • Current rate: 10% (assuming qualifying criteria are met)
  • From 6 April 2025: The rate increases to 14%
  • From 6 April 2026: The rate increases to 18%

Inheritance Tax

The Budget announced that, from 6 April 2027, most unused pension funds and death benefits payable from a pension will be included in a person’s estate for IHT purposes. This may have significant consequences for individual states, either creating a huge IHT bill that may not have been there previously or exasperating an existing one considerably. Changes were also made to business relief, introducing a £1m allowance per individual and then a 20% IHT rate thereafter.

Working alongside a financial adviser will be critical to help navigate the following avenues:

  • Cashflow Modelling – Assess the sustainability of retirement income through detailed cashflow analysis to ensure long-term financial security.
  • Maximising valuable tax wrappers pre & post sale – ISAs, pensions, onshore & offshore bonds.
  • Estate Planning – Review estate plans to account for the inclusion of pension assets in the taxable estate.
  • Trust Structures – Consider establishing trusts to manage and protect assets for future generations.
  • Investments – Explore investments that qualify for Business Relief to mitigate IHT liabilities.
  • Intergenerational Investment Strategies – Implement investment portfolios that align with long-term family goals and risk tolerance.
  • Lifetime Gifting – Utilise annual gift allowances to transfer wealth tax-efficiently.

Joined Up Advice 

The MGroup Corporate Finance and Clifton Wealth Partnership specialise in assisting business owners with the multitude of options and strategies when considering exit planning, working together to offer specialist advice that includes:

  • Finding the right buyer: We use our business networks and market insights to identify and connect with buyers who align strategically and financially with your goals.
  • Business valuation: A comprehensive business valuation will help you understand the true worth of your business, set a realistic price and negotiate effectively with potential buyers.
  • Deal management: Our team will support you throughout every aspect of the transaction, ensuring a smooth process by handling due diligence, timelines, and regulatory compliance.
  • Negotiation skill: Specialist advisors will advocate for you to secure the best possible terms and value in the transaction.
  • Tailored financial planning:Customised strategies to align with personal and family financial goals.
  • Tax-efficient solutions:Expertise in navigating the latest tax regulations to minimise liabilities.
  • Investment management:Access to diversified portfolios managed by award-winning investment managers.

Let’s Work Together

While the budget introduces higher rates and tighter rules for some, careful planning can help you achieve the best outcome from a sale. Whether you’re ready to sell now (and aiming to complete before April 2025) or planning ahead, why not book a business exit review with The MGroup Corporate Finance to explore your options? Contact Geoff Pinder (07717 874357) for a confidential discussion and personal introduction to Alan Crook at Clifton Wealth Partnership.

The MGroup

Like to know more about how The MGroup can help you or your business?

Call our offices in Oxford 01865 552 925 & Witney 01993 776 476 or use our form.

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