Starting and selling a business
Complex economic outlook
Anyone contemplating starting a new business needs to factor in current and forecast economic conditions. As a result of the Iran conflict, the UK economy is now only expected to grow by around 0.7% in 2026, inflation, currently standing at 3.0% (April 2026), is likely to be higher than expected, and energy costs will almost certainly go up.
If that is not enough bad news, April has brought in higher business rates (the business rates discount for English retail, hospitality and leisure businesses is no longer available) and increased employee costs due to the uplift in rates of minimum wage. Then there is the recently enacted Employment Rights Act which has already started to have an impact due to enhanced employee rights. The bank base rate is down to 3.75%, and was expected to be cut further during 2026. However, it is now more likely that the base rate will rise in the short term rather than being cut.
When it comes to selling a business, it doesn’t matter whether you are developing a business idea to quickly cash in before starting all over again (the typical serial entrepreneur), planning a smart career move (with the successful sale of a self-started business looking very good on your resum.) or are in for the long haul – planning your exit strategy at an early stage will ensure you don’t pay more tax than necessary. This might be just the time to do that planning.
