The Autumn Budget 2025 has been delivered, and while there weren’t any major shocks for business owners, there are some important points you need to be aware of – particularly if you’re thinking about selling your business or restructuring over the next year or two.
Let’s look at what matters for businesses across Manchester, Sale, Chester and beyond.
Capital gains tax
CGT rates remain unchanged in this budget. The increases announced in last year’s Autumn Budget are still going ahead as planned in April 2026, which gives business owners some stability knowing what the rates will be if they’re looking to sell.
If you’re a business owner considering a sale and want to take advantage of current rates, you’ve got until April 2026 to act. The key is not to leave it until the last minute. If you’re serious about selling, start getting your affairs in order now rather than waiting until early 2026 when everyone else will be doing the same.
Business and agricultural property relief
Whilst the planned changes for Business Property Relief (BPR) and Agricultural Property Relief (APR) are still coming in April 2026, it was announced that the allowance will be transferable, allowing spouses to receive the benefit on death even if they don’t hold any BPR assets.
If you’re going to be caught by those changes, you need to start planning your exit or succession strategy now. Proper business succession planning takes time, and you’ll want to work closely with your accountant and solicitor to get it right, so don’t leave it until last minute.
Investment and start-up support
There were some encouraging announcements around extending Enterprise Management Incentives (EMI), Enterprise Investment Scheme (EIS), and Venture Capital Trust (VCT) tax reliefs. The intention seems to be supporting entrepreneurs not just at the starting blocks, but helping them build sustainable businesses over time.
This is particularly good news for start-ups in the tech sector and businesses looking to scale. Previously companies with more than 250 employees or gross assets over £30m couldn’t operate an EMI share option scheme. These limits have been doubled making EMI’s a lot more attractive to company share option plans (CSOPs) which are limited to £60k of options per employee, where as EMI allows for a maximum of £250k.
Employee ownership trusts
Here’s one that caught people off guard: the 100% CGT relief on Employee Ownership Trusts (EOTs) has been reduced to 50% with immediate effect.
That’s a significant change if you were banking on a completely tax-free exit. That said, 50% relief still makes EOTs an attractive option for business owners who want to transition their business to employee ownership – it’s just not quite as generous as it was.
Dividends and salaries
The increase in income tax on the basic dividend rate (8.75% to 10.75%) and the higher rate (33.75% to 35.75%) adds another layer of fiscal drag. However, the additional rate has been left unchanged at 39.35%. Whilst this is an increase, depending on the amount being taken out, it will remain tax efficient to pay yourself a minimum wage by salary and topping up with dividends.. Don’t make any changes without speaking to your accountant first, though as what works for one business won’t necessarily work for another, and you’ll need to crunch the numbers for your specific situation.
Professional partnerships
The expected National Insurance increase on professional partnerships was dropped. That’s welcome news for solicitors, accountants, and GP practices operating in partnership structures across Manchester, Sale, Chester and the wider North West.
Treasury modelling suggested the changes would cost more to implement than they’d raise, so the plans were shelved. Partnerships can breathe easy – for now at least.
Property income tax
One development worth noting relates to the new rate of tax on property income. Whilst the government continues to attack individuals who hold more than one property, they don’t seem to be changing the rules if you hold these properties in a company. Holding properties in a company can be more as you’d pay corporation tax rather than income tax on rental profits.
Incorporating your existing properties can be an expensive process in relation to tax (capital gains tax, stamp duty etc), but with the proper advice, such costs could be completely mitigated. We’ve handled plenty of property incorporations over the years, and this change might well see more landlords heading down that route. Again, it’s not a one-size-fits-all solution, but it’s worth exploring with your professional advisors if you have a property portfolio.
Reconstruction relief
A small change was made to the rules in relation to reconstruction relief in order to close a tax avoidance loophole. If you are in the process of a reconstruction (i.e. putting in place a new holding company), tax clearances that have been obtained under the old rules will expire on 26 January 2026, so you will need to complete your reorganisation by that date or have to resubmit.
What should you do next?
If any of these changes affect your business, book in some time with your accountant and solicitor sooner rather than later. The key to getting this right is planning ahead. These changes don’t all come into force overnight, which gives you time to make informed decisions rather than rushed ones.
At Slater Heelis, we’re here to help you work out what this all means for your business. We provide straight-talking advice from solicitors who understand businesses in the North West.
Get in touch with our corporate team if you’d like to discuss how the Autumn Budget affects your plans. We’ll help you work out the best way forward.
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Scott Sands is a Partner and Head of our expert Corporate law team.
He advises individuals, OMBs, SMEs, and corporates on a wide range of corporate matters, including acquisitions and disposals, joint ventures, investments, employee share schemes, and family investment companies.
His sectors of expertise include technology, private wealth, charities, and professionals (including advising accountants, solicitors, architects, and medical specialists).
If you’re concerned about the above subject, contact our corporate law specialists today on 0330 111 3131 or via our online enquiry form.
