Budget 2025: What it means for business owners considering a sale
The Chancellor’s November 26th Budget has provided long-awaited clarity on several areas that have shaped the decisions of business owners throughout the year.
While some measures were tougher than hoped for, having a defined tax landscape is valuable. Shareholders now have firmer ground on which to plan, particularly those considering a business sale within the next one to three years.
Capital Gains Tax in the autumn Budget 2025
Wealth taxation remains the headline area. No further changes to the general rate of Capital Gains Tax (CGT) were announced beyond last year’s increases in the lower and higher rates of CGT. Those earlier adjustments have already been absorbed by the market, as was predicted by KBS Corporate’s analysts following the 2024 Autumn Budget – we have seen shareholders achieve more favourable deal structures as buyer and investor demand has not waned.
Deal momentum and market confidence
The period of speculation leading up to the Budget tends to create more difficulty than the change itself. With uncertainty now removed, we expect deal momentum to continue building, especially in light of falling interest rates which make access to funding more readily available. For shareholders assessing their options, we can help ensure that timing and deal structure still deliver strong overall value following the Budget 2025 for business owners.
Employee Ownership Trust relief changes in the UK 2025 Budget
One area where adjustment did occur under the 2025 budget was the relief available on sales to Employee Ownership Trusts, which has been moderated to 50%. While this represents a change to the previous regime, most business owners considering a traditional trade, private equity or strategic sale will be unaffected. For those considering an EOT route, which remains a tax-efficient option, the measure simply means the benefits now need to be assessed alongside the broader strategic and commercial objectives of the transaction.
Inheritance Tax changes in the 2025 Budget
Inheritance Tax (IHT) reform also featured prominently. Changes to Business Property Relief, the future inclusion of pensions within estates, and new limits on lifetime gifting represent a meaningful shift in the way families will plan for the long term.
These adjustments close off some familiar routes but also encourage earlier, clearer decision-making. We expect many business owners to work with us to reassess share structures, succession plans and whether a sale in the near term provides more certainty for future generations. Navigating IHT, CGT and corporate structuring together can be complex, which makes specialist guidance particularly useful.
Post-Budget stability and planning for business owners
Beyond specific tax measures, the wider significance of the Budget lies in the sense of the stability its long-speculated announcement brings. Speculation can now be replaced by clarity. Buyers can model returns more reliably following Budget 2025, while sellers learning how to sell a business can calculate post-tax proceeds with fewer assumptions.
Reviewing structures, timing and wealth planning after Budget 2025
For shareholders considering a sale, this is a valuable moment to revisit corporate structures, assess the impact of the new rules on net proceeds, and test different timing scenarios – our guide to business exit strategy covers all the key factors to help you plan effectively.
Aligning these decisions with family objectives and long-term wealth planning is now more straightforward with the uncertainty removed. The combination of CGT, IHT and pension changes, along with wealth tax considerations in the 2025 Budget, means the advice of our team can help ensure every element works together and that opportunities are not missed.
A clearer landscape for business owners preparing for a sale
Although elements of the UK 2025 Budget may be challenging, they also provide the clarity needed for strategic planning. The months ahead offer business owners who are weighing up a sale a clearer and more stable platform following Budget 2025 from which to make informed decisions – and we are available to help guide them through it.