October 2024 Budget: Act Now to Secure Business Asset Disposal Relief for Your Solvent Company

At the end of October 2024 the budget looms, business owners looking to sell or wind down their solvent companies via Members' Voluntary Liquidations (MVLs) should take action to secure Business Asset Disposal Relief (BADR) while it remains available. Formerly known as Entrepreneurs’ Relief, BADR allows business owners to reduce Capital Gains Tax on the sale of a business to just 10%, potentially saving up to £100,000 per person under the current lifetime cap of £1 million.

For years, speculation has surrounded the future of BADR, particularly in light of rising government debt. Each new budget raises questions over whether the relief will be reduced or even scrapped altogether. The March 2020 budget saw a cap placed on the relief, but since then, it has remained untouched. With a new government facing a £22 billion fiscal gap, there is significant concern that the October budget could target BADR for cuts or elimination.

In response to the uncertainty, Parker Walsh has reported an increase in enquiries about completing MVLs before the October budget. Directors aiming to take advantage of the 10% tax rate are advised to act quickly to allow enough time for asset distribution before the budget.

Why Choose Parker Walsh for Your MVL?

For directors considering an MVL, Parker Walsh is the firm of choice. Their comprehensive, in-house service ensures efficiency, cost-effectiveness, and direct access to expert insolvency practitioners. With a proven track record of managing MVLs successfully, Parker Walsh provides clients with the confidence that their liquidation will be handled seamlessly, ensuring compliance with all legal and financial obligations.

Working with your existing corporation tax advisors, Parker Walsh's personalised service ensures that each client receives dedicated support throughout the process, making them an industry leader in solvent liquidations. Whether you are a seasoned business owner or navigating an MVL for the first time, Parker Walsh’s expertise can guide you through this complex process with ease.

Now is the time to act. If BADR is removed or reduced in the upcoming budget, future tax implications could be severe. Consult with Parker Walsh today to secure your tax relief and navigate your MVL efficiently.

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