After weeks of speculation, the Chancellor delivered the Autumn Budget on 28 October 2026.
And if you’ve been wondering what it all means for your business, you’re certainly not alone!
There are some important changes ahead, particularly for employers, landlords and business owners thinking about selling their companies.
But it’s not all bad news. Some of the tax increases that businesses were worried about haven’t materialised.
We’ve picked out the announcements we think matter most to small business owners, without the unnecessary jargon.
First, what’s changing?
1. Minimum Wage — another increase from April 2027
From 1 April 2027, the National Living Wage for employees aged 21 and over will increase to £13.21 per hour.
Rates for younger workers and apprentices will also rise.
For businesses with employees, particularly those in hospitality, retail and other labour-intensive sectors, this means another increase in operating costs.
And remember, it’s not just the hourly rate. Employer National Insurance, pension contributions and holiday pay all need to be considered.
Our advice: Review your staffing costs, budgets and pricing now rather than waiting until April.
2. Selling your business? An important tax change
This is one of the biggest announcements for business owners thinking about retirement, succession or selling their company.
From 6 April 2027, the lifetime limit for Business Asset Disposal Relief (BADR) will reduce from £1 million to £500,000.
BADR allows qualifying business owners to pay a reduced rate of Capital Gains Tax when disposing of their business.
The rate remains at 18%, but the amount of qualifying gains eligible for that rate will be halved.
For example, someone making an £800,000 qualifying gain on the sale of their business could potentially pay £18,000 more in Capital Gains Tax under the new limit, assuming the excess is taxed at 24%.
Our advice: If you’re considering selling, retiring or closing your company in the next few years, it’s worth reviewing your plans well in advance. However, don’t rush into major decisions purely to beat a tax deadline.
What about the New Founders’ Relief? — good news for some entrepreneurs
The Budget also introduced a new Founders’ Relief, offering a 10% Capital Gains Tax rate on up to £10 million of qualifying lifetime gains from 6 April 2027.
However, before everyone gets too excited, this isn’t a relief for every business owner!
It’s aimed specifically at founders and early investors who have helped build exceptionally high-growth, innovative UK companies.
The qualifying conditions are expected to be strict, and the finer details are still being finalised.
Our advice: It’s a welcome development for qualifying entrepreneurs, but most small business owners should continue planning around the existing Capital Gains Tax rules and Business Asset Disposal Relief.
3. Landlords — higher tax rates on rental income
For those who own rental properties personally, there’s less welcome news.
From 6 April 2027, the Income Tax rates applying to property income will increase again to:
Basic rate: 24%
Higher rate: 44%
Additional rate: 49%
These changes affect individuals receiving taxable rental income personally, rather than rental profits taxed within limited companies.
Our advice: Review your expected rental profits and future tax liabilities, particularly if you’re already a higher-rate taxpayer. Remember that changing how properties are owned can itself trigger significant tax costs, so any restructuring needs careful consideration.
4. Investing in equipment? Capital allowances are changing
The government has announced changes to the tax relief available on certain business investments.
From January 2027, the main-rate first-year allowance for qualifying expenditure will increase from 40% to 50%.
However, the main-rate writing-down allowance will reduce from 14% to 12% from April 2027.
The £1 million Annual Investment Allowance remains unchanged.
For many smaller businesses, the existing Annual Investment Allowance will continue to provide full tax relief on qualifying purchases.
Our advice: If you’re planning significant equipment purchases, consider the timing and tax treatment as part of your investment decisions.
5. Changes to payroll and tax administration
There are also changes coming to the way businesses report and pay tax.
Mandatory payrolling of certain benefits in kind will begin from April 2027, with further benefits following in April 2028.
The government is also progressing plans for electronic VAT invoicing from April 2029 and changes to how some self-assessment taxpayers make payments towards their tax bills.
These aren’t all immediate changes, but they’re worth keeping on the radar.
Now for some good news!
After all the speculation, there are several areas where the government has decided not to introduce further tax increases.
6. Employers’ National Insurance — no further increase
The employer National Insurance rate will remain at 15%, with the annual secondary threshold staying at £5,000.
The Employment Allowance also remains at £10,500 for eligible employers.
While there’s no new increase, the existing costs haven’t disappeared. With thresholds remaining frozen, employment costs will continue to be a significant consideration for many businesses.
Our advice: Make sure your budgets reflect the full cost of employing people, not just their salaries, i.e., employers’ NI and pension costs
7. Corporation Tax — no change to the rates
Another bit of welcome stability.
The main Corporation Tax rate remains at 25%, with the small profits rate staying at 19% for qualifying companies.
Marginal relief continues to apply to profits between £50,000 and £250,000, although these thresholds are reduced where companies have associated companies.
There were no changes announced to the associated-company rules.
Our advice: If you operate more than one limited company, make sure you’re using the correct Corporation Tax thresholds when forecasting your tax liabilities.
8. Good news for some high-street businesses
From April 2027, qualifying retail, hospitality and leisure businesses in England could benefit from more generous business rates relief.
The rateable value threshold for 100% Small Business Rates Relief will increase from £12,000 to £18,000, with tapered relief extending to £21,000.
There will also be additional support for qualifying pubs, social clubs and live music venues.
Our advice: If you operate from business premises, check whether you’re eligible for additional relief. It could make a worthwhile difference to your overheads.
9. Smaller businesses and side hustles get a boost
From 6 April 2027, the trading allowance will increase from £1,000 to £3,000.
This could be helpful for people earning relatively modest amounts from self-employment or side businesses.
The allowance is an alternative to claiming actual business expenses, so it won’t necessarily be the best option for everyone.
10. VAT — no increase in the headline rate
The standard VAT rate remains at 20%, and the VAT registration threshold stays at £90,000.
That’s welcome stability for businesses already managing rising costs and tight margins.
However, changes to VAT reporting and online marketplace arrangements are planned for future years, so businesses will still need to keep an eye on developments.
11. Inheritance Tax — no major changes to gifting rules
Despite speculation before the Budget, the government has not extended the seven-year gifting rule or increased the headline Inheritance Tax rate.
The existing rules for making gifts during your lifetime remain unchanged.
However, previously announced changes affecting business assets and inherited pensions still need to be considered when planning how to pass wealth to the next generation.
So, what does all this mean for your business?
There are certainly some positives in this Budget, particularly the decision not to increase employer National Insurance or Corporation Tax rates.
But that doesn’t mean businesses can afford to stand still.
Employment costs are still rising, some tax reliefs are becoming less generous, and changes to property income and business disposals could affect longer-term plans.
The biggest lesson? Don’t just focus on how much money your business brings in. Focus on how much it actually keeps.
Now is a good time to review your pricing, profitability, cash flow and future plans.
Because the businesses that understand their numbers and plan ahead are generally better placed to deal with whatever comes next.
And that’s something we believe in very strongly at Brooks Accountants.
The Brooks Accountants Team
This article summarises selected announcements from the Autumn Budget on 28 October 2026. Some measures require legislation or further guidance before taking effect. Tax treatment depends on individual circumstances.