30/10/2026
Over the past few days, we've been asking for your predictions on what the Autumn Budget might bring. Now we have the answers!
Here are the key announcements affecting business owners and what they could mean for you 👇
🔸 Founders’ Relief: a new 10% CGT rate on up to £10m of lifetime gains for qualifying founders of high-growth, innovative companies, from 6 April 2027. The conditions are tight:
➡️ You held 25%+ of the shares from when the trade started, and for at least 5 years
➡️ The company has £10m+ turnover and 15+ full-time employees
➡️ It meets two of three growth tests: 25% turnover growth, 25% headcount growth, or £1.5m+ R&D spend
🔸 BADR: the lifetime limit halves to £500k for disposals from 6 April 2027, and the rate stays at 18%. The government says three-quarters of claimants will still get relief on their whole gain.
🔸 Property and savings income: rates of 24% (basic), 44% (higher) and 49% (additional) from 6 April 2027. Property rates apply in England, Wales and NI, and savings rates apply UK-wide. Dividend rates are unchanged, so the case for holding property in a company strengthens.
🔸 Company distributions: changes to how distributions are taxed from April 2028, with draft legislation due in 2027. The reforms are designed to protect capital treatment for genuine changes in ownership, including families passing down their business, and to make demerger relief more generous in some cases. No further detail has been published yet.
🔸 EMI2: a new scheme that expands the tax-advantaged share options available to growing businesses. Alongside recent EMI changes, it gives companies more flexibility to attract, retain and reward key employees as they scale.
🔸 Capital allowances: the main first-year allowance rises to 50% for spending from 1 January 2027, and the main writing-down allowance falls to 12% from April 2027.
R&D: the Claim Notification Form is scrapped from 1 April 2027, and the Additional Information Form will be simplified from autumn 2027.
🔸 National Living Wage: rises to £13.21 an hour from 1 April 2027, and the 18–20 rate becomes £11.27.
🔸 Mileage: the approved rate is 55p for the first 10,000 business miles (in place since 6 April 2026), and 35p for miles above that from 6 April 2027.
🔸 Payrolling benefits: mandatory payrolling of company cars, vans, fuel and medical benefits starts on 6 April 2027, and other benefits follow from 6 April 2028.
With several of these changes coming into effect from April 2027, now is a good time to review how they could affect your business and future plans.
If you'd like to discuss any of the announcements and what they could mean for you, get in touch with the team at Debere.