More British entrepreneurs are eyeing early exits from their businesses in response to tax policy shifts and economic uncertainty, according to new research commissioned by Brown Shipley, the UK wealth manager and subsidiary of Quintet Private Bank.
The nationwide survey of 4,000 adults found that 38 per cent of UK entrepreneurs are planning to explore selling their business earlier than anticipated, prompted by tax changes unveiled in the October 2024 Budget. Meanwhile, 44 per cent say the rise in National Insurance contributions will affect their plans for business growth.
These pressures, combined with a challenging market outlook, appear to be accelerating decision-making. Over a third (36 per cent) of respondents now intend to sell their business outright to crystallise value and manage personal wealth — up sharply from 21 per cent in January 2024.
The findings also show that financial risk is increasingly top of mind. In the months following the Budget, the number of business owners looking to secure external investment to mitigate risk rose to 40 per cent, compared to 25 per cent at the start of the year. A slightly smaller proportion (37 per cent) intend to raise investment to support their growth plans.
Succession planning is also gaining traction as entrepreneurs focus on wealth preservation. Despite ongoing changes to UK inheritance tax, one in three business owners still plan to reduce their equity stake while keeping ownership within the family. Younger entrepreneurs appear significantly more inclined toward this approach, with nearly half (49 per cent) of 18–34-year-olds considering it, compared to just 10 per cent of over-55s.
A similar generational divide is evident in internal succession plans, with 53 per cent of younger entrepreneurs favouring employee buyouts or leadership transfers, compared to only 9 per cent of older business owners.
Entrepreneurs’ confidence in their financial planning is rising, with 54 per cent now saying they are confident in their long-term strategies — up from 47 per cent in January. Among younger entrepreneurs, confidence is even stronger, reaching 68 per cent.
Simon Smith, Head of Private Banking (South) at Brown Shipley, said the results reflect real conversations the firm is having with clients. “Confidence in the UK market is more fragile than it has been in recent years, and entrepreneurs are taking a pragmatic approach to succession and wealth management,” he said. “Inheritance tax reform is clearly playing into this too, as founders look at the long-term legacy of their business and how best to secure it for future generations.”
The research paints a picture of a shifting entrepreneurial mindset — one increasingly driven by risk mitigation, intergenerational wealth planning, and the need to adapt to a volatile fiscal environment.
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Tax changes trigger wave of early business exits among UK entrepreneurs, survey finds