The pre-April 2025 rush highlighted how sensitive the M&A market is to CGT changes. Business owners planning an exit should seek proactive advice to understand how potential future tax reforms could impact their net proceeds and timing strategy.
As business owners, your strategic focus is on growth, risk management, and maximising value.
The upcoming Autumn Statement, anticipated in late October or early November 2025, will significantly shape the UK’s economic landscape, directly impacting corporate transactions. While we await specifics, are team has highlighted some key areas that business leaders would do well to begin considering.
Anticipated Impact Areas
Fiscal Responsibility and Tax Adjustments: Chancellor Rachel Reeves’ commitment to fiscal responsibility suggests a cautious approach to public finances, potentially leading to revenue-raising measures. For corporate transactions, this could mean:
-
Capital Gains Tax (CGT) & Business Asset Disposal Relief (BADR): Following the increases in April 2025 (BADR from 10% to 14%, with a further 18% planned for April 2026), further adjustments to rates or reliefs are possible. The market’s sensitivity to these changes was clear in the pre-April 2025 rush.
The pre-April 2025 rush highlighted how sensitive the M&A market is to CGT changes. Business owners planning an exit should seek proactive advice to understand how potential future tax reforms could impact their net proceeds and timing strategy.
- Corporation Tax & Business Incentives: While the UK’s corporation tax rate is competitive, any adjustments could shift its attractiveness for investment. Conversely, enhanced tax reliefs (e.g., “full expensing,” R&D credits) could stimulate M&A.
- Non-Dom Tax Rules: The abolition of non-UK domiciled tax rules and replacement with a residence-based regime from April 2025 will influence investment and divestment decisions of those previously benefiting from the non-dom status.
- Wealth Tax Discussions: While complex to implement, continued discussions around a wealth tax could introduce uncertainty, prompting high-net-worth individuals to review asset holdings and divestment strategies.
Driving Investment: The ISA Landscape
The government aims to foster a stronger “investment culture” and direct more domestic capital into the stock market. The Chancellor’s recent Mansion House speech in July 2025, while not announcing an immediate cut, signalled ongoing consideration of reforms to ISA rules, specifically to encourage a shift from Cash ISAs to Stocks and Shares ISAs.
Changes to ISA rules, particularly those shifting capital to equities, along with the stated desire to encourage savers to be less risk averse and take up investments in stocks and shares, could potentially create a trickle down effect with an increased pool of domestic capital for investment, potentially benefiting privately held companies seeking growth funding or considering future listings.
Regulatory Environment and Business Support
Broader policy announcements will also shape the business landscape:
- Investment Incentives: Measures to remove investment barriers (e.g., streamlining planning, improving grid access) or targeted support for sectors like green energy could create M&A opportunities.
- Digital Markets and Competition: The Digital Markets, Competition and Consumers Act, effective from April 2025, will reshape competition law and influence deal structuring, particularly for digital businesses.
The new Digital Markets, Competition and Consumers Act signifies a major shift. M&A due diligence for digital businesses must now rigorously assess compliance to avoid future liability.
- Employment Law: Increases to the National Minimum Wage and rises in Employer National Insurance Contributions (from 13.8% to 15% from April 2025) will impact operating costs, influencing business profitability and acquisition attractiveness.
Strategic Implications for Corporate Transactions
The Autumn Statement presents both challenges and opportunities:
- Valuation & Timing: Tax changes directly impact net proceeds for sellers and acquisition costs for buyers. Anticipated changes can drive a ‘wait and see’ approach or accelerate deals.
The lesson from April 2025 is clear: tax changes can create deal urgency or indeed deal delay. Sellers considering a sale or acquisition should model scenarios with advisors and be ready to adapt timelines.
- Due Diligence: Increased regulatory scrutiny, especially in digital markets, demands thorough due diligence.
- Sector-Specific Impacts: Targeted reliefs could make certain industries more attractive for investment.
Our Approach: Strategic Legal Advice
At White & Black, our purpose is to provide strategic legal advice to business owners to help them grow their business, manage their risk, and maximise their value. In light of the Autumn Statement, this means:
- Proactive Analysis: We monitor announcements closely for their impact on corporate transactions.
- Tailored Advice: We provide bespoke guidance on how proposed changes affect your business and objectives.
- Risk Mitigation & Value Maximisation: We advise on structuring deals to mitigate risks and strategically position your business for growth or a successful exit.
Our experts utilise their experience to support your growth plans. From investment to international expansion, acquisitions to re-structures, our team will find the most suitable solution for your business helping you achieve sustainable growth whilst managing the priorities and interests of everyone.