Key Budget Changes Business Owners Need to Know

The November Budget introduced several reforms that will directly affect employers, scaling companies and business owners. While some measures are designed to encourage investment and support growth, others will increase costs or reduce reliefs that many businesses currently rely on. Below is a concise overview of the changes most likely to impact your organisation

1. Updates for Employers – Minimum Wage Increases

From April 2026, the legal minimum wage for workers over 21 will rise by 4.1% to £12.71 per hour. Workers aged 18 to 20 will see an 8.5% increase to £10.85 per hour, reflecting the government’s broader move toward a single adult rate.

Employers should review upcoming payroll budgets, staffing structures and contract terms to ensure compliance ahead of April.

2. Employee Ownership Trusts (EOTs) – Relief Cut by Half, but Still a Valuable Exit Route

A major change took effect from November 2025. The Capital Gains Tax relief available to business owners selling shares into an Employee Ownership Trust has been reduced from 100% to 50%. Whilst the overall tax benefit of an EOT-led exit has narrowed, we still believe that EOTs are here to stay, continuing to offer a positive cultural, commercial and succession planning advantages – particularly for owners who value employee- led continuity and long-term stability.

3. Expansion of EMI Qualifying Limits

The Enterprise Management Incentive scheme is being expanded to help scaling companies attract and retain talent. Key reforms include:

Employee limit doubled to 500 employees

Company share-option limit doubled to £6m

Gross assets threshold increased to £120m

Maximum holding period extended to 15 years, applying to new and existing options

These changes significantly broaden the scheme’s reach, enabling more companies to offer meaningful equity-based packages in a competitive talent market.

Looking Ahead

These reforms create both opportunities and considerations for business owners—particularly those reviewing exit strategies and equity incentives. If you’d like to explore how these changes may affect your business, please get in touch at hello@almondco.uk.