Autumn Budget 2026

On 28th October, the new Chancellor, John Healey, delivered his first Budget seeking to provide some alleviation to taxpayers facing cost of living pressures whilst giving clarity and incentives to the business community.  Our team at EQ, have been busy determining what the Budget might mean for you.

For business owners, the key changes were

• Lifetime limit for Business Asset Disposal Relief is halved from £1m to £500k
• A new, though heavily restricted, Founders Relief
• Reshaped capital allowances regime
• An increase to the small business rates threshold and to the National Minimum Wage
• Simplification to the R&D regime

Future changes to the taxation of distributions and the repayment of capital making reconstructions, shareholder exists and succession more challenging.

For individuals:

• Remember that from 5 April 2027, the value of pension pots will form part of an estate for IHT purposes
• A further 2% increase on savings income and property profits
• A greater focus on wealthy taxpayers and their tax affairs
• Tackling of taxpayer debt
• Some measures to alleviate cost of living pressures

“The Budget provided some welcome simplification to certain areas of tax administration but equally set out a road map to reduce tax avoidance and misbehaviour from taxpayers.  The importance of robust documentation and commerciality in transactions has never been greater.  Our tax team at EQ will be delighted to speak with you about how the Budget might affect you and/or your business.” – David Morrison, Head of Tax

Our Budget reactions:
For a quick read on the main announcements, see how our experts across Sumer responded.