Why employee ownership is reshaping law firm succession
July 1, 2026
Employee ownership is one of the fastest-growing business models in the UK.
A familiar question for business owners
Capital Gains Tax (CGT) is often a key factor when selling shares, transferring ownership or passing value to the next generation. CGT can apply to disposals of assets including shares, land and intellectual property and the rules can involve different reliefs, rates and reporting requirements depending on the circumstances.
Why speculation still matters
Recent commentary has focused on whether CGT rates – currently 24% for higher rate taxpayers and 18% for basic rate taxpayers – could move closer to income tax rates or whether existing reliefs could be revisited.
While there is no certainty that any such changes will occur, and it would be unwise to make major commercial or personal decisions solely on the basis of political commentary, uncertainty can provide a useful prompt to revisit existing plans. For many owners, the value built up in a company represents years of risk, reinvestment and personal commitment. A change in the tax treatment of a disposal could therefore have a significant impact on the net proceeds available after a sale.
Employee ownership is one of the fastest-growing business models in the UK.
For many law firm partners, the idea of stepping away from their practice can feel daunting.
Mergers and acquisitions in the UK legal sector are more than balance sheets and client lists: they transfer professional responsibilities,
Law firm mergers demand sensitivity, expertise, and discretion. By working with ALFMA members, you gain access to advisers who:
Every merger is a defining moment. With ALFMA at your side, you can approach it strategically, confidently, and with the assurance that your firm’s future is in safe hands.
The Association of Law Firm Merger Advisers are a team of proven market experts, to help you take the risk out of merging your business.
If you would like to speak with a member of the team you can contact us below.
