There’s been a quiet but noticeable increase in interest around management buyouts (MBOs) in recent months.
Not because the idea has changed. MBOs remain a natural option for succession, but because a new variable has crept in: tax.
The increase to the Business Asset Disposal Relief (BADR) rate this month has made people look twice.
What was ten per cent is now fourteen per cent, and it is set to rise again to eighteen per cent in April 2026. That upward trend is prompting more business owners to take timing seriously.
‘When’ feels as important as ‘how’
Tax is rarely the sole reason behind a major decision, but it often sets the tone for when that decision feels right.
For owners who have spent years thinking about passing on their business, the change in BADR is acting as a kind of deadline. Not a hard one, but something that makes the calendar suddenly more relevant.
That does not mean decisions should be rushed.
MBOs take time to get right, and they should never be dictated by a tax timetable. But when a potential tax saving runs into six figures or more, it naturally becomes part of the wider conversation.
Is a management buyout viable right now?
This moment is a chance to step back and reflect. Is the management team ready? Does the business have the structure to support the transition? Is this the right next chapter for the owner, the team, and the business as a whole?
For some, the answer might be yes, and the tax position simply strengthens the case.
For others, it may highlight what still needs to happen before an MBO becomes viable.
With another increase already announced for April 2026, there is a window of time to plan well and act with intention.
Not every MBO needs to happen quickly, but now is a sensible time to bring it into focus.
The numbers may be prompting the question, but it’s the people, the purpose and the plans that will shape the answer.
If an MBO has been on your mind, whether seriously or just in the background, a short conversation can help bring clarity, test assumptions, and give you a clearer sense of timing.
We are always happy to talk things through, even if you are still in the early stages.
Contact us today to start mapping out what your next chapter could be.