Skip to main content

Budget 2026

Our tax experts' reflections on the Budget

Highlights

5 things CFOs need to know about the Autumn Budget

A Budget of certainty for CFOs: the 25% rate holds and little here will move the forecast 

  1. 25% corporation tax rate remains unchanged 

  2. Main rate writing down allowance (WDA) down from 14% to 12% from 1 April 2027 

  3. National Living Wage and National Minimum Wage up 3.9% from 1 April 2027 

  4. Suspensions on business tariffs to be extended to December 2028 

  5.  Mandatory VAT e-invoicing to be introduced from April 2029 

There will be relief that corporation tax is unchanged, and most other changes will have little impact for CFOs 

Rob Williams

Rob Williams

Partner

Tariffs

Brad Ashton, Partner in WTS UK’s Customs and Global Trade practice, reacts to the tariff suspensions announced in the Budget.
The suspension of tariffs on food - will it be passed down to consumers?

 

Brad Ashton

Brad Ashton

Partner

HR Directors

5 things HR Directors need to know about the Budget

A Budget of incremental change, with minimum pay levelling up.

  1. 3.9% increase on National Living Wage (to £ 13.21 per hour) and National Minimum Wage (to £11.27 per hour) from 1 April 2027 

  2. Increased tax-free mileage rates: 55p for the first 10,000 miles and 35p per mile for mileage above 10,000 miles 

  3. No changes to the rates and thresholds for personal income tax. 

  4. Salary sacrifice for pension contributions will be restricted to £2,000 a year from April 2029 

  5. Widened visa schemes attracting global talent to the UK across Graduate Visa, Global Talent Visa and High Potential Individual Visa 

The increasing minimum wage is likely to have a disproportionate impact on some sectors and requires closer monitoring of actual working hours on an individual basis. 

Nothing to do right now but be aware that there will be questions about the change to the salary sacrifice rules for pensions. 

Family and friends

5 things family and friends need to know about the Budget

A mixed Budget for households, with help on fuel and pensions but pay and savings still squeezed 

  1. Personal tax-free allowance stays at £12,570 in 2027 to 2028 

  2. Tax on other savings up from April 2027. Cash ISAs are no longer being reduced and will remain at £20,000, with a new starter investment ISA to be introduced. 

  3. Pensioners whose only source of income is the state pension will be shielded from income tax. 

  4. Salary sacrifice pension: NI-free to £2,000 a year from 2029 

  5. Petrol: the 5 pence a litre duty cut runs to 1 July 2027 and the increased mileage allowance remains 

Ask your employer how pension salary sacrifice will work from 2029. 

Roger Holman

Roger Holman

Partner

Founders

5 things Founders need to know about the Budget

Founders’ relief was the real prize for those who build big. For most owner-managers, the cheap exit just got more complex.

  1. New Founders' Relief: 10% up to £10 million – how will this interact with BADR and the old ER limits?
  2. BADR lifetime limit halved to £500,000 from 6 April 2027 
  3. Taking money out: new rules on buybacks from April 2028 
  4. Selling to an Employee Ownership Trust? Your team keeps their EMI options from 6 April 2027
  5. New entrepreneurs can access funding to help with their living costs

Nothing needs immediate action, unless you have a deal in train. The Founders' Relief rules are out for consultation until 30 November 2026. 

If you’re planning a sale, it is worth reviewing your timetable against 6 April 2027 with your adviser, Deals agreed but not completed by then face special rules. 

Roger Holman

Roger Holman

Partner