Autumn Budget 2026: what changes for UK business owners and directors

Qualifying gains are taxed at 18% up to a lifetime limit. That limit falls from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027. The 18% rate does not change. Gains you have already relieved on earlier disposals count towards the new limit, and anything above it is taxed at the normal rates: 18% within your basic rate band and 24% above it. HMRC estimates around 13,000 of the roughly 51,000 people who claim the relief will be affected.

The £3,000 annual exempt amount is set against the gain taxed at the highest rate first, as in HMRC's HS275 worked example. On gains of £1 million or more the extra tax is just under £30,000 (6% of £500,000, less the effect of the allowance).

Signing before 6 April 2027 is not enough on its own. HMRC's note says anti-forestalling rules will apply to unconditional contracts entered into before 6 April 2027 that complete afterwards: those gains get the £500,000 limit unless the parties can show they did not enter the contract to get a tax advantage from the timing rule, or, for connected parties, that it was for wholly commercial reasons. A separate rule covers elections to disapply the share reorganisation rules made on or after 6 April 2027. Take advice on timing before you sign.

Sources: HMRC note: new BADR lifetime limit · HS275 helpsheet · Budget 2026 rates (Annex A)

A new Capital Gains Tax relief for founders of and early investors in high-growth companies, at a 10% rate with a £10 million lifetime limit, from 6 April 2027. Who qualifies, and the holding and company conditions, are still being consulted on: the technical consultation closes on 30 November 2026. Any Business Asset Disposal Relief or Investors' Relief from 6 April 2027 reduces the founders' relief limit available.

Sources: Founder relief consultation · Annex A

For 2027/28 the rates a director's salary and dividend plan depends on are frozen at their 2026/27 levels: the £12,570 personal allowance and £37,700 basic rate band, dividend tax of 10.75%, 35.75% and 39.35% with the £500 dividend allowance, employer National Insurance at 15% with the £10,500 Employment Allowance, and Corporation Tax at 19% and 25%.

Check your salary and dividend split · Source: Annex A

Savings income will be taxed at 24% (basic), 44% (higher) and 49% (additional) from 6 April 2027, up from 20%, 40% and 45%. Property income gets its own rates for the first time, at the same 24%, 44% and 49%. For individuals the property rates apply in England, Wales and Northern Ireland; the Scottish and Welsh governments can set their own. The personal savings allowance (£1,000 / £500) and the £5,000 starting rate for savings are unchanged.

Sources: HMRC note: savings and property rates · Annex A

From 6 April 2027 the trading allowance, which also covers miscellaneous income, rises from £1,000 to £3,000, and the Income Tax Self Assessment reporting threshold rises to £3,000 with it.

Source: HMRC note: increasing the trading allowance

The writing-down allowance on main-rate plant and machinery falls from 14% to 12% for the financial year 2027 to 2028. The £1 million Annual Investment Allowance is unchanged. R&D claims made on or after 1 April 2027 no longer need a claim notification form.

Annual Investment Allowance calculator · Sources: Annex A · HMRC note: R&D reliefs

From April 2029 businesses must have a Direct Debit instruction in place for VAT and PAYE return payments, unless exempt. You can still pay by other methods; the Direct Debit is a safeguard that collects any return liability still unpaid at the due date. From 1 April 2029, VAT-registered businesses must be able to issue and receive VAT invoices as e-invoices, unless an exemption applies.

Sources: Direct Debit consultation response · E-invoicing implementation roadmap