Maximise Tax Savings Before the Business Asset Disposal Relief (BADR) Change!

A crucial deadline is fast approaching for business owners and accountants: from 6 April 2025, the tax rate on qualifying gains under Business Asset Disposal Relief (BADR) will rise from 10% to 14% . Further increases are set to follow, with the rate increasing to 18% in 2026. This is your reminder to act now to secure the current lower rate.

Why take action now? 

If you are considering closing your company and extracting funds in a tax-efficient way, a Members' Voluntary Liquidation (MVL) may be the ideal route. Through an MVL, distributions to shareholders may be taxed as capital gains* rather than income, making BADR a valuable relief where certain conditions are met—particularly while it remains at 10%.

Key Advantages of an MVL Before 6 April 2025:

✔ Lock in the 10% Tax Rate if available to you – Completing an MVL before the deadline may enable you to benefit from the lower BADR rate, avoiding the increase to 14%.

✔ Tax-Efficient Fund Extraction – Distributions through an MVL before the deadline will be taxed at the lower capital gains tax rate if you qualify, which may result in significant tax savings. 

✔ Further Increases – With a further increase to 18% in 2026, early action may help minimise your tax exposure over the long term. 

✔ Expert Guidance & Compliance – Our experienced team manages the entire process smoothly, ensuring full legal compliance and minimal disruption.

Act Now ! 

Time is Running Out! With the 6 April 2025 deadline fast approaching, prompt action is essential. The MVL process requires professional expertise, and our dedicated MVL specialists are ready to assist you every step of the way.

Get in touch today for a free, no-obligation consultation and ensure your business exit is as tax-efficient as possible.

ENDS

For media enquiries, please contact:

Katie Smith

Tel: +44 (0)20 7186 1144

Email: ksmith@moorfieldscr.com

About Moorfields

Moorfields Advisory Ltd is one of the UK's leading boutique firms of restructuring and insolvency specialists. The highly skilled teams include restructuring professionals and licensed insolvency practitioners who provide leadership, experience and high-quality advice to companies and their stakeholders in financially distressed situations.

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