Autumn Budget 2026: Key Tax Changes for Private Clients and Business Owners
The Autumn Budget brings specific changes for business owners, savers, landlords and trustees. Several measures are intended to apply from April 2027, although legislation and consultation remain important. For private clients, the immediate task is to identify which announcements affect existing arrangements and planned transactions.
Business Asset Disposal Relief is to retain its 18% Capital Gains Tax rate, but its lifetime limit will fall from £1 million to £500,000 for qualifying disposals from 6 April 2027. Previous claims count towards the limit. Proposed anti-forestalling rules mean that signing a contract before that date will not necessarily secure the existing allowance. Business owners considering a sale should review both eligibility and timing before committing to a transaction.
The new Founders’ Relief would offer a 10% Capital Gains Tax rate on qualifying share disposals from 6 April 2027, within a £10 million lifetime gains limit. It targets founders and significant early investors in high-growth, innovative UK companies. Detailed eligibility conditions remain under consultation, so the relief should not be assumed to apply to every business sale.
For savers and landlords, announced Income Tax rates from April 2027 are 24%, 44% and 49% for the basic, higher and additional bands. Savings rates apply across the UK; the stated property rates apply in England, Wales and Northern Ireland, subject to devolved powers. The property and savings trust rates will also be 49%. Clients should assess the impact on income and cash flow before restructuring investments.
The Budget also proposes tighter Inheritance Tax rules for trust liabilities, applying to chargeable events from 28 October 2026. These clarify allowable trustee debts and extend restrictions on deductions, including certain beneficiary-funded arrangements. Trustees should review borrowing and funding structures with their advisers. Across these measures, tailored advice is essential before changing ownership, making gifts or accelerating a sale.
Need advice on how the Autumn Budget 2026 could affect your finances? Our Private Client team can help you understand the implications of the proposed tax changes and identify the most appropriate steps for your circumstances. To speak to one of our legal experts, please call 0330 822 3451 or complete our online enquiry form.