How will the upcoming CGT changes impact your pharmacy business?
In this blog post, Richard Thomas (Senior Business Agent – Pharmacy at Christie & Co) outlines the upcoming Capital Gains Tax (CGT) changes and how they might impact your pharmacy business.
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In the Autumn Budget 2024, the Government announced:
- A phased increase in Capital Gains Tax (CGT) rates, with the next major rise scheduled for 6 April 2026
- Currently, qualifying business owners benefit from Business Asset Disposal Relief (BADR), which allows gains to be taxed at a reduced rate of 14%. This rate will rise to 18% from April 2026
How this might impact your pharmacy business
These changes represent a notable reduction in net proceeds for sellers who delay. For pharmacy owners considering retirement, succession, or a strategic exit, and bearing in mind the current average timeline for a pharmacy sale is six to seven months, acting sooner could result in significant savings.
In addition, on 7 August, the Bank of England’s Monetary Policy Committee voted to reduce the Bank Rate from 4.25% to 4%, which has improved affordability for buyers and is driving increased demand for high-quality pharmacies across the UK.
Tips for how to prepare for the changes
- Ensure you have the most up-to-date financial information available, ideally three years of accounts as well as year-to-date management information
- Speak to a reputable agent ASAP to ascertain market conditions and a likely sales price for your pharmacy
- We are likely to see a rush to market at the start of 2026, so it would be prudent, if a sale is in your plans, to move quickly to ensure your business is at the front of the queue
To discuss this topic in more detail, contact Richard: richard.thomas@christie.com / +44 (0) 7756 875 135