UK investors are confident about the UK’s prospects despite the fallout from June’s Bexit vote, according to research released today.
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KBS Corporate surveyed private equity and venture capital institutions and found 94% were optimistic about the country’s long-term prospects.
Meanwhile 97% said they would continue to deploy funds at the same rate as before the vote. KBS said business owners could expect a “flurry of M&A activity in 2017”, particularly those in financial services, manufacturing and IT.
“Next year may well be in line with record levels experienced in 2015,” said Simon Daniels, a director at KBS Corporate, which advises business owners on selling up.
“Acquisitions of ‘UK centric’ businesses, whose operations are unaffected by the European Union, are also likely to continue at the current pace going into 2017.
“Meanwhile, UK exporting businesses are becoming increasingly attractive following the depreciation of the value of the pound against other major currencies. The effect of this is cheaper UK imports for foreign businesses and consumers, which has accelerated demand.”
Mr Daniels said tax relief for entrepreneurs and investors meant it was the perfect time to sell up.
He said: “Now is the most tax-efficient time in recent history to sell a business as Entrepreneurs’ tax relief, which grants business owners a preferential capital gains tax rate of just 10% on business gains of up to £10 million, has been extended to include long-term investors, whilst capital gains tax has been slashed by 8% for all business owners.”