Beyond the Budget Headlines: What Entrepreneurs Need to Know

Malli Kini analyses the key changes that will significantly affect UK entrepreneurs over the coming years

22 December 2025 | Author: Malli Kini

While the recent Budget avoided headline-grabbing tax shocks, it introduced a series of incremental changes that will significantly affect UK entrepreneurs over the coming years

I was delighted to contribute to Taxation magazine’s Q&A ‘Beyond the Budget headlines for UK entrepreneurs’ (subscription required) which explores of the key considerations for UK business owners and founders. You can read the full article here.

Key Impacts for Business Owners

Dividend & Income Tax: From April 2026, dividend tax rates rise by two percentage points, narrowing the advantage of the low-salary/high-dividend model. Frozen income tax thresholds until 2031 will pull more individuals into higher rates

Remuneration Planning: Strategies now require bespoke planning, balancing salary, dividends, pensions, and National Insurance

Property & Investment: Higher tax on savings and property income from 2027, plus a council tax surcharge on high-value homes from 2028, will reshape property economics. Family Investment Companies (FICs) may become more attractive

ISAs & Pensions: ISAs remain valuable, but new allocation rules and changes to National Insurance (NI) exemptions on salary-sacrifice pensions from 2029 add complexity

Growth Incentives: EMI eligibility expands, but reduced VCT relief weakens appeal for early-stage investment

Exit & Succession: Reduced Capital Gains Tax (CGT) relief on Employee Ownership Trust sales and proposed changes to business relief from April 2026 make timing and structure critical

What Should Advisers Do Now?

Over the next 6–24 months:

Review remuneration and pension strategies
Stress-test property portfolios and consider FIC structures
Reassess share incentives for talent retention
Plan succession ahead of Inheritance Tax (IHT) changes and evaluate exit readiness

We’re proud to have shared our insights in Taxation Magazine. If you need tailored advice on how these changes affect your business or personal planning contact our Private Client team.