Sep 24

2026

Autumn Budget 2026 lands on 28 October: the tax moves worth making before then

The Autumn Budget will be delivered on Wednesday 28 October 2026 by Chancellor John Healey under Prime Minister Andy Burnham. The 2024 Labour manifesto pledged not to increase National Insurance, the basic, higher or additional rates of Income Tax, or VAT. That is a political commitment rather than a legal restriction, so planning should focus on tax rules already enacted rather than assumptions about the Budget.

What is already locked in

Several changes affecting businesses and owners are already in force or legislated.

The Business Property Relief and Agricultural Property Relief change deserves attention. The original plan was for a £1 million allowance at the 100% rate. The government increased this to £2.5 million from 6 April 2026. Any unused allowance can transfer to a surviving spouse or civil partner, potentially giving up to £5 million of combined 100% relief on qualifying property. Above the allowance, qualifying property generally receives 50% relief, producing an effective Inheritance Tax rate of up to 20% where the standard 40% rate applies. If you previously reviewed your succession planning against the £1 million proposal, revisit the figures.

What is still genuinely unknown

The existing Corporate Tax Roadmap commits to cap the headline Corporation Tax rate at 25% for this Parliament and maintain permanent full expensing and the £1 million Annual Investment Allowance. Those remain current policy, but the 28 October Budget could announce new measures.

No further change to Business Asset Disposal Relief beyond the current 18% rate has been confirmed. The dividend allowance remains £500, while the ordinary and upper dividend rates have already increased by two percentage points for 2026/27. Any further changes to Capital Gains Tax, pensions, dividends or property taxation remain unconfirmed.

The moves worth reviewing before 28 October

If you are planning a business sale, model the current 18% BADR rate where you qualify rather than assuming future treatment. The current M&A market may also affect commercial timing independently of tax.

Owner-managed companies should model dividend extraction using the 2026/27 rates. Estates containing qualifying business or agricultural property should use the £2.5 million combined allowance now in force, while recognising that eligibility conditions still apply.

Businesses with Irish interests should assess cross-border tax separately because Irish Budget measures and UK tax rules operate on different timetables.

Companies under financial pressure should also integrate tax timing with restructuring, whether reviewing a proposed arrangement or preparing external audit and lender-facing information.

Getting ahead of it

The useful work before 28 October is to model the rules already enacted, identify exposures to possible Budget changes and avoid irreversible decisions based only on speculation. SCC Chartered Accountants can review the current tax position and help businesses plan around confirmed rules while remaining ready for measures announced in the Budget.