Business owners are speeding up sales plans amid fears of tax hikes in the upcoming budget
Growing concerns about tax increases have led nearly 30% of UK business owners to accelerate plans to sell their companies, according to new analysis from wealth management firm Evelyn Partners.
The survey, which was conducted among 500 business owners with a turnover of at least £5 million, found that 29% of respondents had accelerated their plans to exit their business in the past year, while 23% cited fear of capital gains tax as the first reason. feature.
The findings come as the government continues to hint at tax increases ahead of the October 30 budget. Labor leader Sir Keir Starmer has also suggested that wealthy individuals and businesses could face a heavier tax burden to help manage the UK’s challenging financial situation.
Laura Hayward, tax partner at Evelyn Partners, said business owners are increasingly “on edge” due to concerns about potential changes to capital gains tax and inheritance tax. He mentioned that many businessmen are looking to protect the value of their businesses before the negative tax changes begin.
“The business environment for many owners has been difficult enough in recent years as they have worked to rebuild after the pandemic amid cost-of-living pressures and inflation,” Hayward said. “Now, with the potential for negative tax changes in the upcoming budget, it’s understandable that some are looking to reap the rewards of their hard work sooner rather than later.”
The analysis is also consistent with a decline in both business and consumer confidence. The Institute of Directors’ economic confidence index fell sharply from 12 in August to 38 in September as business leaders expressed concern about the tax burden. Additionally, the GfK consumer confidence index fell from -13 in August to 20 in September, with many people reporting a negative outlook on their personal finances and the economy as a whole.
As budget day approaches, businesses are looking for potential changes, hoping for clarity on how any new tax measures could affect their plans for growth, investment, or selling their businesses.
