The Succession Wave Is Real
Nearly a third of UK SME owners aged 43 and over plan to sell within five years. That is roughly 58,000 mid-sized businesses approaching an ownership change, all at a time when the tax cost of selling or passing on a business has increased significantly.
What Has Changed
Between October 2024 and April 2026, five key tax reliefs for business owners were narrowed:
- BADR rose from 10% to 18% CGT
- EOT relief was halved
- Standard CGT increased to 24%
- BPR for IHT capped at £2.5 million
- Investors’ Relief lifetime limit cut to £1 million
These changes affect every exit route — sale, gift, inheritance — and they apply now.
The Biggest Obstacle: Founder Dependency
A business that cannot function without its owner is harder to sell and worth less. Buyers discount for this risk. Reducing founder dependency takes two to three years of deliberate work: delegating relationships, building management capability, and documenting processes.
What You Should Do
If you plan to exit within five years:
- Get a professional valuation now
- Start reducing your personal involvement
- Review your estate plan alongside your exit plan — they are the same conversation
- Use the time you have — tax planning strategies need years to become effective
The owners who prepare early will have the most options and the best outcomes. Those who wait will face higher costs and fewer choices.