The introduction of Founders’ Relief, offering a 10% Capital Gains Tax rate on up to £10 million of qualifying lifetime gains, signals the Government’s intention to encourage high-growth businesses.

The Relief is now in consultation phase. The proposed conditions attaching to the relief appear to be complex in nature, requiring cradle-to-grave type planning as shareholdings at business inception are crucial to being able to access this incredibly valuable relief. Advice should be sought from now, even though the relief will only apply for disposals from 6 April 2027.

In contrast, one of the most disappointing announcements is the reduction in the lifetime limit for Business Asset Disposal Relief (BADR) from £1 million to £500,000, effective from 6 April 2027.

For entrepreneurs who have spent years building successful businesses, this could affect the proceeds they retain when selling. It is particularly relevant to those owning mature, stable businesses, but also any who did not hold 25% of relevant shares in businesses when they commenced trade, as these appear to be outside of the target claimants for Founders’ Relief.

The announcement for BADR does create a planning window before April 2027 for owners contemplating qualifying disposals; a ‘use it or lose it’ opportunity. However, accelerating a business sale purely for tax purposes may have wider commercial consequences. The timing, valuation, structure and longer-term objectives of any transaction must all be considered.

While supporting new entrepreneurs is welcome, there is an apparent imbalance between incentivising founders of high-growth businesses, yet reducing relief for established business owners. Both contribute significantly to employment, investment and economic growth.

Changes to capital allowances could provide opportunities for capital intensive businesses.

The increase in the main rate First Year Allowance to 50% from January 2027 could be a welcome boost for those claiming that relatively-new allowance. Any businesses with balances in their main capital allowances pools will, however, see the writing-down allowance reduced to 12% from April 2027, so that will need to be factored into calculations, especially very large corporates paying corporation tax by instalments.

There have been some helpful upgrades to the government’s approved employee share ownership schemes. Some relaxation on EMI Schemes over notification and also disqualifying events are helpful, if not dramatic. But the extension of the CSOP scheme – now to be called EMI 2 – sees shares valued up to £120,000 being eligible from April. Three years ago, the CSOP limit was £30,000 but being four times that level, CSOP schemes are likely to be much more widespread in the private sector, particularly as these can apply to some trading businesses which are excluded from EMI.

Simplification of the Research & Development claims process should be welcomed by innovative businesses, with the requirement to pre-notify HMRC of an intention to claim being removed from April next year. Tracking the requirement – or not – to pre-notify HMRC had been a particular headache for company owners since its introduction in 2023.

The increases in Income Tax rates on property and savings income from April 2027 will affect individuals with investments and savings.

The basic, higher and additional rates applying to these income sources will rise from 20%, 40% and 45% to 24%, 44% and 49% respectively. These are four percentage points higher than the main income tax rates applying to those sources of income in this tax year, and extend the previously-announced rise of two percentage points that had been planned to come into force from April 2027 after the last Budget.

For landlords, higher taxation could further reduce net rental returns at a time when many are already facing increased maintenance, financing and regulatory costs.

This may lead some landlords to reconsider future investment or even whether remaining in the private rented sector is commercially viable. Any reduction in investment could have wider implications for the availability, quality and affordability of rental homes.

Some property owners may also consider reviewing existing ownership structures; the question of whether property could be owned in a corporate wrapped will be even more on the table now. However, any restructuring must be assessed carefully, particularly where Capital Gains Tax, Stamp Duty Land Tax or other transaction costs could arise, as well as any restrictions imposed by mortgage lenders.

Savers with substantial interest income should also review their arrangements and consider how best to use available allowances, including ISAs.

Taken together, these measures demonstrate why tax planning should consider a person’s overall financial position rather than individual taxes or investments in isolation.

Additional business rates support for eligible retail, hospitality and leisure businesses will provide some relief to sectors facing sustained cost pressures. 

However, business rates are only one element of operating expenditure. Employers must also contend with wage increases, recruitment challenges and wider inflationary pressures.

Business owners should revisit forecasts, assess the implications for their costs and consider where additional pressures can realistically be absorbed.

The Budget presents different challenges and opportunities depending on individual circumstances. Planning should start immediately in relation to some future changes; in other cases action taken prior to April could save some tax.

For business owners, priorities may include reviewing exit and succession plans, assessing investment opportunities and updating financial forecasts.

For individuals, attention may turn to property income, savings, tax-efficient investments and longer-term family financial planning.

Above all, I would caution against making significant decisions without taking advice. The interaction between different measures, their implementation dates and individual circumstances can make a substantial difference to the outcome.

Our Autumn Budget 2026 Summary Report provides further detail on the announcements.

Join our Autumn Budget webinar – Wednesday 4 November 2026

Specialists from Beavis Morgan, Duncan & Toplis and Old Mill, all part of Kinbrook Group, will explore the key announcements, discuss their practical implications and answer your questions.

Register for our Autumn Budget webinar

If you would like to discuss how the Budget may affect your business or personal tax position, please get in touch.