Growing concerns about tax increases have led nearly 30% of business owners in the UK to accelerate plans to sell their companies, according to new analysis from wealth management firm Evelyn Partners.
The survey, conducted among 500 business owners with turnovers of at least £5 million, found that 29% of respondents had sped up their plans to exit their businesses over the past year, with 23% citing fears of higher capital gains tax as a primary factor.
The findings come as the government continues to hint at tax hikes ahead of the budget on October 30. Labour leader Sir Keir Starmer has also suggested that wealthier individuals and businesses may face a heavier tax burden to help manage the UK’s challenging financial situation.
Laura Hayward, tax partner at Evelyn Partners, said that business owners are increasingly “on edge” due to concerns over potential changes to capital gains tax and inheritance tax. She noted that many entrepreneurs are looking to secure the value of their businesses before any unfavourable tax changes come into effect.
“The business environment for many owners has already been tough enough in recent years as they’ve worked to rebuild after the pandemic amidst cost-of-living pressures and high inflation,” Hayward said. “Now, with the potential for unfavourable tax changes in the upcoming budget, it’s understandable that some are looking to realise the gains of their hard work sooner rather than later.”
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