Four in 10 business owners could relocate if Budget raises taxes

Four in 10 UK business owners would consider moving their operations abroad if the chancellor’s upcoming Autumn Budget introduces further tax rises, according to new research from S&W.

According to the firm’s latest Business Owners Sentiment Survey (BOSS), some 41% of business owners with annual turnovers of £5m or more would contemplate relocating overseas if the Budget delivers “unfavourable” tax changes. 

This survey of 500 business owners found that 42% were concerned about the likely impact of the Budget on their business. An equal proportion said they would consider leaving the UK if a wealth tax were introduced or if capital gains tax rates were increased. The same share said higher capital gains tax would discourage them from starting a new business. 

Meanwhile, 40% said they would consider relocating if inheritance tax reliefs on gifting assets were restricted.

The findings also suggest that announcements made in the previous Budget have already influenced business owners’ outlook. Some 40% of respondents said they were considering leaving the UK due to a proposed extension of inheritance tax to pensions from April 2027, while 42% pointed to cuts in business property and agricultural reliefs as key concerns.

The report suggests that more than a third (37%) of business owners expect to make redundancies within the next 12 months, and 39% anticipate a hiring freeze over the same period.

Toby Tallon, tax partner at S&W, said: “Our research sends a clear message to the chancellor: further tax rises on risk-takers and wealth creators could drive more of the UK’s most successful businesses and their owners out of the country. Business owners are not just concerned, they’re ready to act.

“The chancellor must put business owners at the heart of the next Budget. We need bold policies that give entrepreneurs confidence and keep Britain open for business while staying fiscally responsible.”

The survey combined responses from those who “somewhat agree” and “strongly agree” when assessing attitudes toward potential tax changes. Figures relating to redundancy and recruitment intentions reflect those who said such outcomes were “somewhat likely” or “very likely”.