Which Autumn Budget 2026 changes are confirmed and which are still reported?

The capital allowance changes and Founders' Relief are set out in official Treasury and HMRC documents. The minimum wage rise, Business Asset Disposal Relief cut, business rates threshold and HMRC enforcement powers come from the Chancellor's speech as reported by the BBC and others, so exact rules and dates still need official confirmation.

Should I bring forward the sale of my business before the BADR limit falls?

Not without advice. The start date and any transitional rules for the reported cut from £1 million to £500,000 have not been confirmed, and the new Founders' Relief may suit some owners better. Speak to us before changing any sale timetable.

When should my company buy new plant and machinery?

The main-rate first-year allowance rises from 40% to 50% for spending from 1 January 2027, while the main pool writing-down allowance falls from 14% to 12% from 1 April 2027 for companies. Timing depends on your year end and whether full expensing already covers the asset, so check with us before committing.

Do I need to change payroll now for the minimum wage increase?

No. The reported 3.9% rise is expected from April 2027. Use it in budgets and cash forecasts now, but wait for the confirmed hourly rates before updating payroll.

What do HMRC's stronger collection powers mean for me?

Expect HMRC to chase overdue Self Assessment and Income Tax more quickly. Keep filings and payments up to date and contact HMRC early if cash flow is tight, as a Time to Pay arrangement is far easier to agree before enforcement starts.

Autumn Budget 2026 Guide: What the Key Changes Mean for Your Business

Last updated: 28 October 2026

The Autumn Budget 2026 was delivered on 28 October. For most business owners, the changes that matter most are: bigger upfront tax relief on new equipment but slower relief afterwards, a new 10% Founders' Relief alongside a reported cut to Business Asset Disposal Relief, a reported 3.9% minimum wage rise from April 2027, wider business rates relief for smaller retail, hospitality and leisure premises, and more funding and powers for HMRC to collect overdue tax.

Some of these are confirmed in official documents; others come from the Chancellor's speech and still need detailed rules. We say which is which below. For every update as it was published, see our Autumn Budget 2026 live feed.

At a glance

Capital allowances (confirmed): main-rate first-year allowance up from 40% to 50% from 1 January 2027; main pool writing-down allowance down from 14% to 12% from April 2027.
Founders' Relief (confirmed, rules under consultation): 10% Capital Gains Tax on qualifying share sales from 6 April 2027, up to a £10 million lifetime limit.
Business Asset Disposal Relief (reported): lifetime limit cut from £1 million to £500,000.
Minimum wage (reported): 3.9% rise for workers aged 21 and over and those aged 18 to 20, expected from April 2027.
Business rates (reported): small business rates relief threshold for retail, hospitality and leisure rises from £12,000 to £18,000 rateable value.
HMRC enforcement (reported): more funding and stronger powers to recover overdue tax.
Trading allowance (reported): up from £1,000 to £3,000.

1. Capital allowances: more relief up front, less later

What changed: capital allowances let you deduct the cost of business equipment from your profits before tax. From 1 January 2027, the main-rate first-year allowance on qualifying new plant and machinery rises from 40% to 50%. From 1 April 2027 for Corporation Tax (6 April 2027 for Income Tax), the writing-down allowance on your main pool falls from 14% to 12% each year. Both are confirmed in the Treasury's Overview of Tax Legislation and Rates.

How it affects you: the 50% first-year allowance mainly helps spending that 100% full expensing does not cover, such as unincorporated businesses and some leased assets. Meanwhile, every business with a balance in its main pool will get relief more slowly, which can push taxable profits up in the short term.

Example: a business spends £100,000 on qualifying equipment not covered by full expensing. At 50% it can deduct £50,000 in year one instead of £40,000. The remaining £50,000 then goes into the main pool, where 12% gives £6,000 of relief the following year instead of £7,000 at 14%.

What to do: review planned equipment purchases and your year end. If your accounting period straddles April 2027, a blended rate will apply, so check your draft tax computation.

2. Selling your business: Founders' Relief and BADR

What changed: the government has confirmed a new Founders' Relief, charging 10% Capital Gains Tax on qualifying share sales from 6 April 2027, up to a lifetime limit of £10 million. It is aimed at founders and major early investors in high-growth, innovative UK companies, and the qualifying rules are still under consultation. Separately, the BBC reports that the Business Asset Disposal Relief lifetime limit will be cut from £1 million to £500,000; start dates and transitional rules are not yet confirmed.

How it affects you: most owner-managed businesses will rely on BADR rather than Founders' Relief, so the reported lower limit means more of a sale gain could be taxed at the full rate. Founders of innovative, high-growth companies may gain significantly from the new relief if they qualify.

Example: a qualifying founder making a £2 million gain would pay £200,000 at 10% under Founders' Relief. An owner of a traditional trading company who does not qualify would only get BADR on the first £500,000 of gains, if the reported cut goes ahead.

What to do: if you are planning a sale or succession in the next few years, talk to us before changing your timetable. Read more in our profit extraction guide for directors and try our Capital Gains Tax calculator.

3. Employers: minimum wage expected to rise 3.9%

What changed: BBC reports a 3.9% increase has been reported for workers aged 21 and over and those aged 18 to 20, with new rates expected from April 2027.

How it affects you: a 3.9% rise adds £3.90 for every £100 you currently spend on these wages, before employer National Insurance and pension contributions. It can also squeeze the pay gap between entry-level and supervisory roles.

Example: a business with an annual minimum wage bill of £250,000 should budget for around £9,750 more in basic pay, plus related on-costs.

What to do: build the increase into your 2027 budgets and cash flow forecasts now, but wait for the confirmed hourly rates before changing payroll. Apprentice and under-18 rates need separate confirmation.

4. Business rates: more small premises taken out of rates

What changed: the BBC reports the small business rates relief threshold for retail, hospitality and leisure properties rises from £12,000 to £18,000 rateable value. The Chancellor said this takes 70,000 businesses out of paying business rates.

How it affects you: rateable value is the official rental value of your premises, not your rent or turnover. Shops, cafes, pubs and leisure venues with rateable values between £12,000 and £18,000 could see a large saving.

Example: a high street shop with a rateable value of £15,000 previously fell above the full relief limit, but would sit under the new £18,000 threshold.

What to do: check your rateable value on GOV.UK and wait for the official start date and rules for your area before revising forecasts.

5. HMRC: more funding and stronger powers to collect tax

What changed: the Chancellor announced extra funding and stronger powers for HMRC to recover overdue tax. The Independent reported that HMRC could take money directly from bank accounts, possibly below the current £1,000 minimum for repeat defaulters; this is not yet in official documents.

How it affects you: this mainly concerns Self Assessment and Income Tax. Directors, landlords and higher earners should expect HMRC to chase late payments faster and with fewer warnings.

What to do: file and pay on time, keep money aside for tax, and contact HMRC early if you cannot pay. Agreeing a Time to Pay arrangement before enforcement starts is far easier than afterwards.

Other changes worth knowing

Trading allowance: reported rise from £1,000 to £3,000, helpful for side businesses and small sole traders.
Female founders: British Business Bank commitments to women-led businesses rise to £200 million in funds. This is investment capacity, not a grant for each business.
Business mileage: 55p stays for the first 10,000 miles, and the rate above 10,000 miles rises from 25p to 35p. Check the official start date before using 35p.
Self-employed parents: eligible self-employed fathers and partners will be entitled to up to two weeks' parental pay of up to £194 a week.
Goods vehicles: road tax at the standard rate may apply where temporary licences add up to more than 12 months, for licences taken out from 28 October 2026.
Gaming machines: from 1 April 2028, suppliers become liable for Machine Games Duty on machines they own under profit-share deals.

Your Budget checklist

Review equipment purchases planned for 2027 and how they fall around your year end.
If a sale or exit is on the horizon, get advice on BADR and Founders' Relief before acting.
Add the expected wage rise to your 2027 budget and cash flow forecast.
Check the rateable value of any retail, hospitality or leisure premises.
Make sure every tax return and payment is up to date.

Reported measures can change once the detailed rules are published, so please do not act on this guide alone. Contact Nordens and we will talk you through what the Budget means for your business.