Why 2026 is Still a Strong Year to Sell Your UK Business Despite Tax Changes
Introduction
As a business owner considering an exit, recent tax policies introduced by Labour may give you pause. However, the market conditions in 2026 remain highly favourable for selling a UK business. If you’re contemplating a sale, now may be the perfect time to capitalise on strong buyer demand, market liquidity, and strategic tax planning opportunities.
At Entrepreneurs Hub, we specialise in mergers, acquisitions, and finding attractive quality buyers and investors for business owners. We are here to guide you through the current landscape. Below, we outline the key reasons why selling your business in 2026 can still deliver excellent results.
Strong Demand for Quality Businesses
Private Equity Interest: Private equity firms and investors are actively seeking profitable businesses with strong growth potential. Despite tax changes, their appetite for high-quality acquisitions remains robust.
International Buyers: As many countries feature English as a second language, combined with the trust and regulation associated with brand Britain, The UK remains a keen target for international investors. A weaker pound has made UK businesses more attractive to overseas buyers. This heightened competition is driving up valuations, creating an ideal environment for sellers.
Favourable Market Conditions
High Liquidity: Investors have significant capital available and are eager to diversify their portfolios. Acquiring businesses is a key avenue for this, ensuring a competitive marketplace.
Thriving Sectors: Industries like technology, healthcare, fire and security, technical compliance and services and renewable energy are flourishing, offering sellers in these sectors the chance to secure premium deals.
Tax Changes Are Not Retrospective
While Labour’s policies have increased the capital gains tax (CGT) rate, existing rules still provide opportunities for strategic tax planning. For example:
Entrepreneurs’ Relief / BADR (Business Asset Disposal Relief): Eligible business owners can still benefit from this relief, which reduces the CGT rate on qualifying disposals. Although this changes from 14% to 18% in April 2026 it still offers a more tax efficient way to extract value from the business.
Deferred Tax Liabilities: Various mechanisms exist to defer taxes or structure sales in ways that soften the immediate tax burden and provide opportunity to recoup a proportion of tax losses through shrewd investment.
Global uncertainties are driving multiple investment interests
The current economic environment remains relatively stable in the UK compared to the complex geopolitics we see unfolding on the news. For well-resourced investors. this can drive a focus on risk mitigation, as investors seek to spread their risk and opportunity coverage across multiple geographies. This is providing a window of opportunity for sellers as these investors look for alternative returns. Acting now, before further policy changes or market shifts, could be a strategic move.
Generational or Personal Goals
Retirement or Succession Planning: For business owners nearing retirement or who do not have a succession plan in place, selling now can help secure long-term goals for themselves and their families.
Securing Wealth: By exiting in favourable market conditions, sellers can diversify their wealth and reduce exposure to future economic uncertainty.
Buyers are Adapting to Tax Changes
Buyers are adjusting their approach to address concerns about higher taxes. For example:
Earnouts: Buyers may include performance-based payments over time, easing the immediate tax impact.
Higher Upfront Offers: Many buyers are increasing their initial payments to remain competitive, which can offset the increased tax burden for sellers.
Access to Expert Advice
Navigating the complexities of tax policies and sale structures can be challenging, but expert advice is readily available*. Working with accountants, tax specialists, and M&A advisors like Entrepreneurs Hub can help you maximise your post-sale proceeds while minimising tax exposure.
Conclusion
While Labour’s tax changes are less generous to business owners considering an exit, the reality remains that it is still a tax efficient way of extracting the value from your business. The combination of strong buyer demand, sector-specific opportunities, and strategic planning options make 2026 an excellent time to sell your business. By acting now, you can take advantage of favourable market conditions before further changes take effect.
If you’re ready to explore your options, Entrepreneurs Hub is here to help. Contact us today to discuss how we can support you in achieving your exit goals.
*Entrepreneurs Hub does not offer Tax Advice, however we would be very happy to introduce you to one of our partners. The figures quoted in this article were correct at the time of publication – independent advice should be sought before making any financial decisions.
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FAQs – Selling Your Company
How do I sell my business in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued using a multiple of its profit, usually EBITDA or adjusted net profit. The multiple depends on factors such as growth potential, recurring revenue, customer diversification and management strength. Professional valuation provides a realistic price range and helps position the business effectively for buyers.
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell a business?
Selling a business in the UK typically takes between six and nine months from preparation to completion. The timeline depends on business readiness, buyer demand and the complexity of due diligence. Early preparation and clear financial reporting can help shorten the process.
When is the best time to sell a business?
The best time to sell a business is when it is performing strongly, growth prospects are clear and you are not under pressure to sell.
Business owners often achieve the strongest outcomes when:
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Profits and revenue are growing
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Financial records are clear and well prepared
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There is visible future growth for buyers
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The owner has planned the sale 12–18 months in advance
Market conditions can also influence valuations. Strong buyer demand, sector growth and favourable economic conditions can increase acquisition activity, but a well-prepared business can attract interest in most markets.
Deal activity often increases during spring and autumn, although transactions complete throughout the year. In practice, preparation and business performance usually matter more than trying to perfectly time the market.
Ultimately, the best time to sell is when both the business and the owner are ready, with the company positioned to demonstrate strong value to potential buyers.
Do I need an adviser to sell my business?
Many business owners choose to work with an M&A adviser to manage the sale process. Advisers help value the business, approach qualified buyers confidentially and negotiate terms. This structured approach can increase the likelihood of achieving a higher value and a successful transaction.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymous buyer approaches and strict non-disclosure agreements. Potential buyers receive limited information initially and must sign an NDA before any sensitive details are released. Business owners approve prospective buyers and maintain visibility over all documentation throughout the process.
How do I value my business before selling?
Valuing a business before selling usually involves analysing profitability, identifying valuation multiples and assessing key value drivers such as recurring revenue and customer concentration.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…