Tax changes force business leaders to park exit plans

44% of business leaders have postponed the plans they had to sell their businesses as business property relief and capital gains tax fears begin to mount.

The Business Owners Sentiment Survey conducted by S&W has found many business leaders have put their plans on hold, while 40% of business leaders have fast tracked their plans before another potential tax raid at this year’s Autumn Budget.

28% of those fast forwarding their exit plans have said it is solely because of the changes to business property relief (BPR) that take effect from April 2026. 39% said they were considering moving their businesses abroad because of this.

Capital gains tax was also on the minds of the business leaders, with 20% saying they are bringing forward their plans as they are worried about increase to it in the upcoming Budget.

Laura Hayward, tax Partner at S&W commented: ‘Our research shows that many business owners working towards an exit have fast-tracked plans because of unfavourable tax changes already announced or others they fear might come in the future.

‘We know from talking to business owners that many have considerable worries that taxes could be increased further in the Autumn Budget to pay for the government’s spending commitments given the gaps in UK public finances.

Just 15% of those surveyed said they have not changed their plans in regard to the timescale of their exit strategies.

Other factors played into why business leaders are changing their exit plans, including supply chain issues, and withdrawals of key investors. Only 9% of the 500 business leaders surveyed said they were doing so because they had plans to retire.

Mark Brockway, corporate finance Partner at S&W said: ‘The split between those who have brought forward their exit strategy and those who postponed it may not be as odd as it first appears.

‘Much will depend on owners’ timescales and their optimism or otherwise about the future. For some, the economic uncertainty resulting from both domestic and international issues – and its impact on valuations – is an obvious motivation to delay.’

Brockway added that ‘businesses thinking of selling are attractive to buyers, with many sectors seeing consolidation’, and it may be time to take advantage of this.