Budget 2026: a summary for entrepreneurs

The Autumn Budget 2026 was announced yesterday and, as usual, there is plenty of detail to work through.

We are currently reviewing the details of the measures announced and considering what they mean for our clients.

In the meantime, we you can download our Budget Summary, which provides an overview of the key announcements and changes.

Our immediate view is this is a rather disappointing budget for entrepreneurs. The main focus for the Chancellor was to increase the  ‘tax take’ so support for businesses was limited.

Some key changes for business owners to note are:

• A reduction in the lifetime BADR allowance (in respect of capital gains tax), from £1m to £500k ,effective from the start of the next tax year. Capital gains tax rates are unchanged.
• The BADR allowance has been steadily reduced by successive governments, which certainly does not encourage corporate finance transactions – however, there is a window between now and 5^th April 2027 to take advantage of the existing £1m threshold (per shareholder).
• A new 10% capital gains tax relief, Founders Relief, will be introduced from 5^th April 2027. However, the rules here are still very much in draft and at this stage it would appear that this relief will be available to very few business owners.
• Increase in the tax rates for both investment income and rental profits by 2%, effective 5^th April 2027. Business owners with significant investment property portfolios should consider whether incorporation is a better option.
• Reduction in writing down allowance from 14% to 12% effective April 2026. This will impact those businesses that have existing capital allowance pools, rather than those who continue to invest in plant and machinery (since the existing 100% reliefs remain).

As we work through the detail, if you have any questions about how any of the measures may affect you or your business please contact us and we will be happy to help.

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