Written by, Robert Johnson Partner

In our pre-Budget blog, we shared our thoughts, hoping that we wouldn’t see more bad news for business in the Spring Statement. Thankfully, there was little in this Budget that was too surprising, and it certainly looks like the Chancellor is saving the ‘goodies’ for next year before an election.

In this blog we give our view on some of the announcements and the outlook for the coming 12 months.

Business Investment

It was encouraging to see the Chancellor continue to promote business investment by announcing a replacement to the capital allowance super deduction that was set to end on 31st March.

The scheme provides 100% First Year Allowance (FYA) or “Full Expensing” of the cost of certain items of plant and machinery from profits before tax in the year of purchase. Currently, this is set to run from April 2023 to March 2026, with the suggestion it may become permanent.

For those business founders continuing to invest, grow and increase business value, these changes will certainly help their plans.

EMI Share Options

Simplifications to the process for granting tax-advantaged Enterprise Management Incentives (EMI) share options were also part of the Spring Budget Statement. This will help owners to retain and incentivise key management and employees and could benefit owners looking to sell or undertake a Management Buy Out in the future.


There was one unexpected announcement; the plan to remove the Pensions Lifetime Allowance charge and raise the Pension Annual Allowance to £60,000 from April 2023. However, for many business founders, the value of their business remains the largest proportion of their retirement funding and this announcement is likely to have little overall impact in their retirement planning.


In our last blog, we hoped that there would be no more bad news for business founders, and we believe that that this Budget will indeed prove to have been largely neutral – quite a low bar!

The ‘perfect storm’ over the last few years of  a global pandemic, political uncertainty, government U-turns, rising interest rates and increasing costs have created a tough environment for many businesses. However, business founders remain resilient to tackle the challenges facing them.

We expect next year’s Budget to produce more headline grabbing announcements before a general election. A change of government at the general election may well see Labour reverse some Conservative policies and a debate around capital gain/wealth taxes seems likely if hugely unwelcome. For this reason, business owners should consider their growth and investment plans now, if they are looking to increase business value and plan their exit.

If you require advice on funding for investment, mergers and acquisitions, or business exit or sale, contact us.


Written by Robert Johnson, Partner

Rising interest rates on the back of burgeoning inflation, teetering on the edge of a recession and the
war in Ukraine have created a ‘perfect storm’ for UK business owners in the past 12 months. Now as
April looms and previously announced corporation tax increases come into effect, you could be right
in thinking as an entrepreneur that the UK Government is not exactly your friend.

With the 2023 Spring Budget on the horizon, is it too much to hope for that Jeremy Hunt may
announce something that promotes entrepreneurship, business investment and wealth generation?

Don’t hit businesses any harder

With a rise in Corporation Tax due, end of the super deduction and a tightening of R&D tax credits
we are all hoping that the Spring Budget doesn’t contain any more bad news for business founders.

A period of stability is essential

After the roller coaster that owners have experienced in the last few years, businesses need a period
of relative stability. Many are predicting a boring Budget but dullness that will be short lived with a
more headline grabbing Budget in 2024 ahead of a general election.

So, what about Capital Gains Tax ‘CGT’?

At the moment, CGT looks likely to remain unaffected, with no suggestion that this might be
increased in the Spring Budget. However, for business founders who are already considering their
exit, it is worth noting that CGT could be back in the firing line for an incoming Labour

The next election must be held no later than January 2025 and although Labour have suggested they
won’t fundamentally change the current Conservatives tax plans, CGT has historically been an area
that is seen as something of a soft target – just look at the restriction of entrepreneurs relief and
other changes.

Whilst we can all hope that a Labour government focused on economic growth, a la Blair 1997,
would surely not punish entrepreneurs by increasing CGT rates on business sales there are no


Our overarching message to Jeremy Hunt is one of ‘steady as she goes’ and focus on giving business
some stability. However, for business founders, a wary eye needs to be kept on the medium-term
tax outlook – that period of certainty may be short lived.