Entrepreneurs Act Early As Tax Changes Approach, Brown Shipley Research Reveals

Entrepreneurs across the UK are racing to reshape their financial strategies ahead of expected tax and policy changes, according to research from Brown Shipley, the UK wealth manager and subsidiary of Quintet Private Bank.

Changes announced in the November 2025 UK Budget have triggered a surge in activity among business owners. New data shows that more than a third (35%) of entrepreneurs plan to accelerate profit extraction ahead of the April 2026 dividend tax rise, bringing forward income while current rates remain more favourable. The Budget confirmed that, from 6 April this year, dividend tax rates for basic and higher-rate taxpayers will increase by two percentage points.

The Budget also introduced a new £2,000 annual cap on salary-sacrifice pension contributions that are exempt from National Insurance, due to take effect from April 2029. In response, nearly a third (31%) of entrepreneurs say they expect to scale back employee pension provision, a shift that could materially reshape benefits structures across smaller, founder led businesses.

Exit plans are also shifting. A third (33%) of entrepreneurs say they are now less likely to use Employee Ownership Trusts following reductions in Capital Gains Tax relief, prompting a reassessment of succession routes that had previously gained strong traction.

Meanwhile, confidence in long-term planning remains subdued. Just 29% say the recent Autumn Budget has increased their confidence, while nearly as many (26%) report it has weakened it.

There is evidence of declining sentiment across other key indicators. Among entrepreneurs, confidence in their business as the primary store of wealth has fallen from 48% to 41% in the past year, signalling growing unease about the durability of enterprise driven wealth. Alignment between personal goals and business plans has also weakened, falling from 54% to 48%, suggesting entrepreneurs are finding it increasing challenging to balance long term ambitions with short term pressures.

Concerns about 2026 risks are also elevated. 50% of entrepreneurs report being concerned that market volatility will impact their ability to preserve their wealth in 2026, compared with 41% of the wider wealthy UK population. A similar pattern emerges around tax changes, with 51% of entrepreneurs expressing concern about the impact this will have on their ability to maintain their wealth, versus 41% overall.

Yet despite heightened levels of caution and weakening sentiment, many entrepreneurs are taking decisive action. Faced with rising uncertainty and a tightening tax regime, entrepreneurs are acting early and reshaping their financial architecture to stay resilient in a more demanding environment.

Katrina Johnson, Head of North Region at Brown Shipley, said:

“Entrepreneurs are reading the signals early. We are seeing a cohort that is not waiting for tax changes to take effect – they are already adapting how they extract profits, structure benefits and plan exits."

“Confidence has clearly softened, and heightened concern around volatility and tax risk is driving a much more proactive mindset. These business owners are reshaping their financial architecture now to stay agile in what they expect will be a more demanding and less predictable environment.”