Autumn Budget 2026: reflections for business owners and entrepreneurs

The Budget presented on Wednesday 28 October 2026 introduced a further set of tax changes for business owners, founders and funders. Some measures create new opportunities, while others may materially affect the timing and net proceeds of a future business sale, the way surplus company or personal cash is invested and the tax cost of personally held property.

This note outlines the initial reflections of our financial planning team and highlights areas where the announcements may change planning considerations. The detail of several measures, particularly the new founders’ relief, remains subject to consultation and legislation, so our thinking will continue to evolve as the rules are finalised.

The interaction between your business and your personal wealth remains critical.

Here, we look at the main Budget themes we consider most relevant for business owners and entrepreneurs.

The Government announced founders’ relief will offer a capital gains tax (CGT) relief for qualifying disposals of shares or securities made on or after 6 April 2027. It is intended to support founders and early funders who have made a significant, long-term contribution to creating and developing high-growth and innovative UK companies.

Founder's relief is planned to offer a flat CGT rate of 10% on up to £10m of qualifying lifetime gains, however the detailed qualifying conditions are now subject to technical consultation, which closes on 30 November 2026.

Alongside this, the lifetime limit for BADR will reduce from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027. Special provisions will apply to certain contracts, share reorganisations and exchanges that begin before that date but are completed afterwards.

For owners considering a sale, succession event, management buyout or corporate reorganisation, the timing and structure may now have a significant effect on the available relief and the resulting net proceeds. Any decision to accelerate or delay a transaction should be based on commercial objectives as well as tax, particularly while the founders’ relief conditions remain under consultation.

The Budget included changes to corporation tax capital allowances, increasing the main-rate first-year allowance from 40% to 50%, while reducing the main writing-down allowance from 14% to 12%.

Businesses planning significant qualifying capital expenditure should revisit the timing, funding and expected tax profile of that investment. A higher upfront allowance may improve near-term cashflow, although the lower ongoing writing-down allowance means the overall pattern of relief should be modelled rather than considering the first-year benefit in isolation.

From 6 April 2027, the rates applying to savings income will rise to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers. Separate property-income rates of 24%, 44% and 49% will also apply.

This is particularly relevant where a business owner holds substantial personal cash deposits, fixed-interest investments outside tax wrappers or personally owned rental property. The changes increase the importance of reviewing the ownership and location of assets, use of available ISA and pension allowances, and the balance between retaining surplus cash in a company and extracting it personally. Any restructuring must consider corporation tax, dividend tax, CGT, IHT and commercial access to funds together.

The Government announced technical changes to the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) rules. It will also engage with stakeholders on improving advance assurance, increasing transparency of fees and strengthening HMRC guidance and compliance activity where fee arrangements divert investment away from qualifying companies.

For business owners using EIS, SEIS or VCT investments as part of wider tax and investment planning, the underlying commercial risk, eligibility, charges, liquidity and investment time horizon remain as important as the available tax reliefs. Existing and proposed investments should be reviewed once the final legislation and HMRC guidance are available.

No single Budget measure should be considered in isolation. A future business disposal, the investment of sale proceeds, pension funding, estate planning, family gifting and the ownership of property or investments can all interact.

Every situation is different. The most appropriate response may be to take action, to preserve flexibility while the detail develops, or to make no change at all. The starting point should be your commercial plans, personal objectives, need for access to capital and attitude to risk, followed by a joined-up assessment of the tax consequences.

How your business links to your personal wealth has never been more important. We can help you navigate the changes, test the available options and make informed decisions as the legislation and guidance develop. To discuss your personal situation, speak to your usual Evelyn Partners contact or book an appointment.