Financial Planning for Business Owners and Entrepreneurs in 2025

Following the Autumn 2024 budget, financial planning for business owners and entrepreneurs in 2025 will be important as new challenges and opportunities arise. With significant updates to tax policies and reliefs, taking a proactive approach will be essential for reviewing your financial strategies, managing profit withdrawals, protecting your wealth, and preparing for the future.

This guide is the first in a series created for business owners and entrepreneurs running their own successful businesses, offering practical insights to support your financial planning in 2025. Whether you’re focused on growing your enterprise, preparing for an exit, or preserving wealth for future generations, these guides aim to help you navigate the financial complexities confidence and clarity.

Navigating the 2025 Fiscal Landscape

The UK Autumn Budget 2024 introduced changes that are likely to impact how you plan financially in the year ahead:

• Business Property Relief (BPR): From April 2026, the availability of BPR will be capped at £1 million per individual. Any qualifying assets above this threshold will face a 20% tax rate. If you use trusts as part of your planning, you’ll also need to consider the new combined £1 million cap for trusts, which makes this an area requiring close review. If you’ve been relying on BPR to mitigate Inheritance Tax liabilities, exploring alternative structures will be important.
• Employer National Insurance Contributions (NICs): With the rate increasing to 15%, you may find this adds pressure to the cost of employing staff, making it worth reviewing your remuneration structures.
• Pensions and Inheritance Tax (IHT): If you have unused pension pots, these will fall under IHT from 2027. Early planning—whether that’s structured withdrawals or maximising contributions—will help you manage this change effectively.
• Capital Gains Tax (CGT): With CGT rates increasing to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, managing the timing and structure of any asset disposals you’re considering will be even more important.

Alongside these changes, some tools remain consistent. Dividend tax rates stay at 8.75% for basic rate taxpayers,, 33.75% for higher rate taxpayers and and 39.35% for those in the additional rate of tax, giving you opportunities to extract income efficiently. Business Asset Disposal Relief (BADR) also remains unchanged, offering a reduced CGT rate of 10% on qualifying gains, up to a £1 million lifetime limit.

What This Series Covers

Through this series, we’ll explore strategies to help you tackle the challenges following the recent budget and opportunities 2025 presents. Separate guides will give you insights and practical advice on:

Optimising Pension Contributions and Managing Costs

Discover how you can make the most of your company or individual pension opportunities, whether you’re based in the UK or abroad, while mitigating the impact of rising employer NICs.

Capital Gains Tax and Relocation Considerations

We’ll look at how you can manage CGT liabilities efficiently and what to consider if you’re thinking about relocating abroad.

Changes to Business Property Relief

You’ll get a detailed look at how the new restrictions — including the £1 million cap for individuals and trusts, as well as the 20% tax rate — might affect your plans and what alternative solutions you can explore.

Succession Planning and Wealth Preservation

If you’re thinking about transferring wealth to the next generation, this guide will help you structure your plans in a tax-efficient way that aligns with your family’s goals.

Investment Strategies Following a Business Exit

If you’re preparing for or have recently exited your business, we’ll guide you on how to reinvest proceeds tax-efficiently and balance short-term liquidity with long-term growth.

Each guide is designed to give you a clear, actionable framework to help you plan effectively.

Why Professional Advice Matters

With tax pressures rising and regulations evolving, getting professional advice can make all the difference. Wealth managers and tax advisers can work with you to develop strategies tailored to your business and personal objectives. By aligning your financial planning with the latest opportunities and rules, you can protect your wealth and adapt to changes with confidence.

Need more advice? Reach out to our experts:

Anna Warren – Tax Director

anna.warren@bentleyreid.com

Mike Winstanley- Director, Wealth Management

mike.winstanley@bentleyreid.com