A law firm has warned of a "frenzy of activity" as business owners rush to close deals before changes to Capital Gains Tax (CGT) come into effect.

Ellis Jones Solicitors, based in Ringwood, said it saw a huge spike in instructions ahead of the autumn Budget, which it believes "is not over yet".

The caseload peaked in October as owners, directors and investors hurried to fast-track exit plans and sales of chargeable assets to avoid paying higher CGT rates.

The chancellor announced in her Budget speech that there will be changes to Business Asset Disposal Relief (BADR), previously known as Entrepreneurs’ Relief, from April 2025.

This has triggered a countdown to what the firm describes as another "cliff edge" moment.

Neil Cook, partner and head of business services at Ellis Jones, said: "The lead-up to the Budget was extremely busy for us as people sought to close deals before the much-anticipated rate hikes took effect, but it’s not over yet.

"While we have just proved we can deal with multiple transactions within tight deadlines, we now expect a further deluge of work to come in before the cliff edge of next April because of changes to BADR."

CGT is a tax charged on financial gains from the sale, disposal or transfer of assets such as company shares, second homes and certain other possessions.

The chancellor used the Budget to put a time limit on the lower 10 per cent CGT rate payable through BADR mitigation on gains from qualifying assets up to a £1m lifetime limit.

From April 6, 2025, she said the rate will go up to 14 per cent and a year later, in April 2026, it will rise again to 18 per cent.

Mr Cook said: "Under BADR now, if you have a £1m gain from a qualifying business asset to dispose of, you will pay 10 per cent, so £100,000.

"Following the chancellor’s announcement, if the deal takes until after 6 April, 2025, to finalise, you will pay 14 per cent, so £140,000, an increase of £40,000.

"If we’re looking at the year after, it will be £180,000, so an extra £80,000 compared to now."