With nothing being ruled out, it is possible the Chancellor may reverse some of the more controversial changes announced in the autumn budget.
In particular, the increase to employers’ NICs by reducing the threshold at which employers start paying NICs could hit tech businesses in the startup and growth phase whose margins would be more significantly impacted. A reversal of this measure would be welcome for many employers, particularly as it is unlikely that increases to the National Minimum Wage will be reversed.
Another area that could be up for reconsideration is the proposed increase to capital gains tax for those making disposals eligible for Business Asset Disposal Relief. The rate of tax is set to increase from 10% to 14% from April 2025 and 18% from April 2026. This is important to consider when tax planning for those in the tech sector looking to exit, and a reversal on this may give back tech business owners the flexibility to consider their options.
