Private Banker International quotes Mike Barrington on the impact of the 2025 Budget on Investors and Entrepreneurs
In an article on the 2025 UK Budget, Private Banker International reports that the Financial Services sector's reaction to the fiscal event is "predictably mixed but assuredly more thoughtful and considered than the majority of political comment".
The article canvasses a range of views in the sector, taking a temperature check from a number of industry leaders on their reactions in the immediate aftermath.
Examples of industry comments include James Neville, CEO of Yaspa, asserting: “Today’s Budget sends a clear and important message to the UK’s entrepreneurs like myself. The government is signalling loud and clear that if you build here, Britain will back you. On the other hand, Nimesh Shah, CEO of Blick Rothenberg summarises the measures as “the most damaging Budget in living memory”.
Mike Barrington, Senior Associate in our Corporate team, gives his views in the piece on the impact of the measures on Investors and Entrepreneurs. Mike explains:
The Autumn 2025 Budget tightens the tax landscape for investors and entrepreneurs. Cuts to capital gains relief on EOT transactions, higher dividend tax rates and a three-year extension of frozen income tax thresholds could raise the cost of exits and profit extraction, prompting many to revisit succession plans, remuneration strategies and deal timelines. Additionally, higher dividend rates and prolonged fiscal drag also mean more owner-managers and investors will be pulled into higher tax bands, making it vital to reassess the balance of salary, dividends, pensions and capital returns.
"Reduced CGT relief on EOT transactions is the most immediate shift, with sellers now facing a material CGT charge that may affect pricing and funding structures. We can expect EOT transaction activity to decrease, at least initially, whilst shareholders consider if the EOT structure is truly right for their business
"The Chancellor also launched a call for evidence on improving the UK’s entrepreneurial ecosystem. Engagement will be key to ensuring new measures reflect practical realities for founders and growth companies.
Read the full article in Private Banker International here.
