UNCERTAINTY surrounding possible changes to business tax reliefs and incentives after the General Election have helped to fuel recent mergers and acquisitions activity in Yorkshire and the North East, according to experts at EY.

The professional services firm’s regional corporate finance team has completed six transactions in the last 12 months with another six in the pipeline.

Rachel Engwell, an EY tax director in Yorkshire, believes that recent activity was partly influenced by uncertainty surrounding potential tax changes following the General Election and an eagerness to get deals done before or soon after May 7.

Rachel said: “Over recent months we’ve seen senior executives and managersment teams considering the impact of a change in government on their future exit plans.

“They are mindful of the possibility that the next government may seek to change or even withdraw certain valuable tax reliefs, but that they could still claim these reliefs by transacting before or as soon as possible after the pre-election.

“Add this taxation uncertainty to the improving economy and strong deal market dynamics, and you’ve got conditions in which private shareholders, in particular, have reflected carefully on their exit options.

“It remains to be seen if this deal activity will stop after the General election or if there will be an overhang of transactions to sustain activity.”