Autumn Statement 2025 | Expert Insights
Response on Business Tax
NICs on pension contributions Business owners will also be stretched by the decision to apply both employers’ and employees’ National Insurance contributions to pension contributions above £2,000 where salary sacrifice is used. For many SMEs, pension contributions form a key part of attracting and retaining staff. Bringing NICs into scope above this threshold increases employment costs and adds complexity to reward structures. Employee Ownership Trusts The cut to Employee Ownership Trust (EOT) CGT relief from 100% to 50% is a significant blow to the employee ownership sector. It is likely to generate very little in tax revenue but will heavily impact the attractiveness of EOTs as a succession planning tool. Sales into EOTs will clearly decline. Given the additional restrictions introduced last year, it is surprising to see such a significant reduction in relief. From here on, we are likely to see EOT transactions only where founders genuinely believe in employee ownership as a long-term governance model.
Nick Wright
Director Jerroms Miller Specialist Tax
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