Changes to Capital Gains Tax (CGT) are set to impact business owners and investors, particularly those planning to sell assets.
The CGT rate for Business Asset Disposal Relief (previously Entrepreneurs’ Relief) will increase from 10% to 14%, raising the tax burden on eligible business sales.
Additionally, a further increase has already been confirmed for the following tax year, with rates set to rise again to 18% from 6 April 2026.
For investors, carried interest – the share of profits from investment funds paid to fund managers – will now be taxed at 32%, a significant increase that could alter investment strategies and fund structures.
These changes mean business owners and investors may need to reconsider the timing of asset disposals to mitigate tax liabilities.