The Autumn Budget and Your Exit: What Business Owners Should Be Watching

Tuesday, 29 September 2026

Every Budget brings speculation, but this one lands at a point when many owners are actively thinking about their future. Chancellor John Healey will deliver his first Budget on 28 October, and with rises to the rates of income tax, employee National Insurance and VAT ruled out, attention has turned to where else revenue might come from.

For anyone who has spent years building a business, the areas under discussion are uncomfortably close to home. The taxes that shape what an owner actually takes away from a sale, and what they can pass on, are precisely the ones drawing the most speculation. Capital gains tax is attracting attention, although no proposals have been announced. Inheritance tax reliefs for family businesses remain under review. The reliefs that matter most to owners have already moved twice in two years. And timing a sale around a Budget is far harder than it sounds.

Capital gains tax

When a business is sold, capital gains tax is usually the largest single deduction. Gains are currently taxed at 18% or 24%, and owners who qualify can claim Business Asset Disposal Relief at 18% on the first £1 million of lifetime gains.

There have been calls from within the Labour party to bring capital gains tax into line with income tax, which would mean rates rising as high as 45% for some. No specific proposals have been put forward, and the government would have to weigh any change against its effect on investment and entrepreneurship. It is speculation rather than policy, but it is speculation worth understanding.

Inheritance tax and the family business

Owners who plan to pass the business on rather than sell it are watching a different part of the Budget. The 2024 changes to inheritance tax reliefs for farmers and family businesses remain under scrutiny, and whether the government revisits them will matter to anyone weighing succession against a sale.

A sale is a process, not a date

This is where the conversation often goes wrong. Owners naturally think in terms of deadlines, but selling a business does not work that way. Preparing the company, finding the right buyer, agreeing heads of terms and working through due diligence takes months. A good process is measured in quarters, not weeks.

Budget changes rarely wait for a deal to complete. When the main rates of capital gains tax rose in 2024, the increase applied from Budget day itself. When Business Asset Disposal Relief increased this April, signing a contract early did not automatically secure the old rate. Trying to outrun an announcement is rarely realistic, and a buyer who senses urgency will price it in.

It is also worth remembering that tax is only one part of the outcome. The price, the structure, how much is paid on completion, what is deferred and what happens to the team all shape the result. A rushed deal can cost far more than a tax change ever would.

What owners can do now

The most useful response to an uncertain Budget is not to predict it, but to be ready for whatever it brings. That means understanding your current tax position and talking it through with a qualified adviser, knowing what your business is worth and what drives that value, and being honest about whether it would stand up to a buyer’s due diligence.

It also means asking the harder questions. Does the business depend on you? Are the financials clean and the growth story clear? Is the management team strong enough to reassure a buyer? These are the things that determine value in any tax regime.

Preparation beats prediction

Nobody knows exactly what will be announced on 28 October. What we do know is that the owners in the strongest position are the ones who prepared long in advance, because they can act when the timing suits them rather than when the calendar forces their hand. At Bluebox Corporate Finance, we work with owners well ahead of a transaction to get them to that point. If the Budget has you thinking about your plans, we would be glad to talk them through.

This article provides general information only and does not constitute tax or financial advice. Tax rates and reliefs are subject to change, and business owners should seek professional advice on their individual circumstances.

quote marks icon

Testimonials