Frantic fortnight of travel firm sales expected ahead of Budget

The first Budget of the new government takes place on 30 October, with radical changes to taxation expected that could affect deals and mergers. 

“We are desperately trying to get things finished by midnight on 30 October," said Travel Trade Consultancy director Martin Alcock. He said there was speculation the Treasury was looking at how far it could increase Capital Gains Tax – typically paid when companies are sold – without stifling acquisitions.

Currently, profits from the sale of shares in businesses are taxed at up to 20%, much lower than wages, which are taxed at up to 45%, and there is much speculation this will change.

Alcock said: “People are frantically going through legal documents; I think we will see a bit of a flurry of sales towards the end of the month.” 

Alcock said a lot of investment was being attracted into travel, with “lots of optimism”, a sentiment echoed by Deborah Potts, founding director of consultancy Summit Advisory.

Speaking at the Xeinadin Leaders in Travel summit on Thursday (17 October), Potts said: “Already in 2024 we have seen far more activity since Covid, and private equity is very much returning to the marketplace. In fact, right now, there is a real rush of businesses trying to tie the knot before the Budget on 30 October – we have never been busier.”

Already this month, travel marketing firm Blue Cube Travel has been sold to Israel’s Talma Travel Solutions and Newmarket Holidays gained a cash injection from investors Soho Square in order to expand.

The past few weeks have also seen Travelopia sell MyPlanet to Scandinavia’s Kilroy Group, while the sale of Gullivers Sports Travel & Events International to Keith Prowse was confirmed on Wednesday (16 October).