Estate agency owners: could April 2027 matter more than you think?

Following on from my post about the Budget, there’s one change anyone considering an exit should have on their radar.

Business Asset Disposal Relief (BADR), previously Entrepreneurs’ Relief, lets qualifying business owners pay a reduced rate of Capital Gains Tax when they sell their business or shares in their company.

From 6 April 2027, the lifetime limit on qualifying gains halves, from £1 million to £500,000. The 18% rate itself stays the same.

Take an agency owner making a qualifying gain of £800,000 on a sale, with none of their BADR allowance used before.

Completing before 6 April 2027, the full £800,000 qualifies at 18%. Tax: £144,000.

Completing on or after 6 April 2027, £500,000 qualifies at 18% and the remaining £300,000 is taxed at 24% for a higher-rate taxpayer. Tax: £162,000.

Same business. Same sale. £18,000 more tax.

And here’s the part that’s easy to miss: what counts is the completion date, not when terms are agreed. Special rules cover contracts signed before April that complete afterwards, so a handshake in March won’t necessarily secure the current limit. Finding the right buyer, agreeing terms, due diligence and legals all take time. Anyone hoping to sell under the current rules realistically needs to start the process now.

Everyone’s position is different, so do speak to your accountant or tax adviser before making decisions. But if a sale is on your mind, this is worth understanding.

The Budget also proposed a new Founders’ Relief, offering a 10% rate on up to £10 million of gains from April 2027. It’s aimed at founders of high-growth, innovative companies and the qualifying conditions are tight, so it’s unlikely to replace BADR for most established agency owners. We’ll be watching how the final rules develop.

If you’re thinking about selling, understand your options sooner rather than later. And if your business is already on the market but a deal hasn’t come together, waiting isn’t your only option.

At 2point0 Realise, we’re in regular conversation with buyers across the estate agency and lettings sector. We know what they’re looking for, which businesses interest them, and how to put the right opportunity in front of the right buyer.

I’d be glad to talk if you’re:

You’ve spent years building your business. Let’s make sure you have a plan to realise its value.

Message me for an informal, confidential conversation.