Entrepreneurs made £182.7 billion from selling their businesses in the past five years, according to latest HMRC data.
It shows that last year’s figure was £33.5bn in the last year alone, down slightly from the £36.7billion they made in 2023.
And experts at Bowmore Financial Planning say they expect a rush in the number of entrepreneurs selling before capital gains tax rates increases April – from 20% to 24% for higher rate taxpayers.
The rate paid under Business Asset Disposal Relief will also rise from 10% to 14%, further incentivising owners to sell before April.
CEO Mark Incledon said: “The increase in CGT is going to hit older entrepreneurs the hardest. It will affect how much they make from selling their business to fund their retirement.”
A lot of entrepreneurs use the proceeds of the sale of their business to fund their retirement
He added: “A lot of entrepreneurs use the proceeds of the sale of their business to fund their retirement so an increase to the CGT rate is going to leave them with far less
“That is a particular worry for those that have kept investing in their business throughout their life rather than taking more money out to put in a private pension.”
He said there was also a danger that increased capital gains tax would deter those aspiring to set up new businesses.
Among those who sold for multi-million-pound sums were Joanna Jensen’s kids’ toiletry business, bought by listed soap maker PZ Cussons for £36.8m in 2022. Another was Michael Ginzo and Sami Bouremoum’s office supply kit for remote workers which was bought for an estimated £77.05m in 2024 to US payroll and HR technology company, Deel.
