Autumn Budget 2026: expected UK tax changes and what businesses and individuals should do now

What tax changes could Chancellor John Healey announce in the Autumn Budget 2026?

There has been considerable speculation about potential tax changes since Andy Burnham became Prime Minister and John Healey was appointed Chancellor of the Exchequer in summer 2026. While we must wait until 28 October to hear the Chancellor’s first Budget, existing government commitments provide some indications of what we don’t expect to change, while other areas have become the focus of widespread discussion.

For many businesses, entrepreneurs and families, the biggest challenge is not knowing whether taxes will rise but dealing with uncertainty. Investment decisions, succession plans, business sales and property transactions are often made over many years. The Budget therefore matters not only because of the individual measures it may contain, but because it provides an opportunity for the government to offer greater certainty about the future direction of tax policy.

Why the Autumn Budget 2026 matters for UK businesses, investors and families?

The Chancellor faces a difficult balancing act.

The Prime Minister and Chancellor have both indicated that public finances remain under pressure and that difficult decisions may be required to maintain the government’s fiscal rules while funding wider policy priorities.

At the same time, the government has already announced several measures designed to support households and businesses, including the temporary zero rate of VAT on domestic electricity supplies in Great Britain this winter and business rates reductions for pubs, clubs and live music venues from April 2027.

As a result, attention has turned to how the government intends to fund its priorities while maintaining its commitments on taxation.

Which UK taxes are unlikely to increase in the Autumn Budget 2026?

One of the most useful starting points when considering possible Budget announcements is the government’s existing commitments.

The Prime Minister has repeatedly reaffirmed Labour’s commitment not to increase the main rates of:

• Income tax
• VAT
• Employee National Insurance contributions

The government’s Corporate Tax Roadmap and Labour’s 2024 manifesto also included commitments to:

• Capping corporation tax at 25% throughout the Parliament
• Retaining full expensing for qualifying capital expenditure
• Retaining the Annual Investment Allowance
• Providing greater certainty and stability for business investment decisions

Businesses will therefore be watching closely to see whether the government reiterates its commitment to these policies and whether any further measures are announced to support investment and growth.

What capital gains tax changes could be announced in the Autumn Budget 2026?

Capital gains tax (CGT) remains one of the areas most frequently linked with possible Budget changes.

Unlike income tax, VAT and employee National Insurance, CGT is not covered by the government’s commitment on taxes on working people. As a result, CGT is one area where changes could be made.

Possible changes include:

• Increasing CGT rates, potentially bringing them closer to income tax rates
• Removing the CGT tax-free uplift on death, whereby beneficiaries generally acquire assets at their market value at the date of death
• Removing the CGT annual exempt amount, currently £3,000 for individuals
• Changing CGT reliefs such as Business Asset Disposal Relief (BADR) and Investors’ Relief

Any announcement affecting CGT rates, reliefs or the taxation of business disposals could have important consequences for entrepreneurs, family-owned businesses and investors, potentially affecting business creation, growth, succession and exit planning.

Wealth taxes, including potential changes to inheritance tax, have also featured in Budget speculation. The government may be reluctant to pursue further reforms so soon after the significant changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) that took effect from April 2026.

Could property tax changes be announced in the Autumn Budget 2026?

Property taxation continues to attract significant attention.

The government is already progressing the proposed High Value Council Tax Surcharge (HVCTS) often referred to as a ’mansion tax’, which is due to apply from April 2028 to residential properties in England valued at £2 million or more.

Recent media reports have suggested that the government is considering reducing the property value threshold from £2 million to £1.5 million.

There has also been speculation suggesting that Healey is considering treating holiday lets as second homes for council tax purposes, instead of businesses.

Property owners, investors and developers with significant property holdings will want to monitor developments closely.

What business rates changes could be announced in the Autumn Budget 2026?

The government has already confirmed a 20% reduction in business rates for pubs, clubs and live music venues from April 2027.

The Prime Minister has subsequently indicated that the government is looking more broadly at business rates and the cost of doing business on the high street.

As a result, further announcements affecting business rates remain an area worth watching, particularly for hospitality, retail, leisure and high street businesses.

What role could devolution play in the Autumn Budget 2026?

Some of the most significant announcements may relate to devolution.

When announcing the Budget date, the Chancellor said that the Budget would move money and power out of Westminster and into communities across Britain.

Additional fiscal powers for local and regional authorities have been widely discussed and may form a significant part of the government’s growth agenda.

Which tax consultations could receive updates in the Autumn Budget 2026?

Alongside any new policy announcements, the Budget may provide updates on recent consultations that could have a significant impact on businesses and individuals.

These include several consultations to which Saffery has submitted responses, including:

• Modernising the taxation of distributions and repayments of capital from companies
• Simplifying treaty relief from withholding tax on interest paid overseas
• The International Controlled Transactions Schedule (ICTS)
• The taxation of UK-resident members of LLCs and other reverse hybrids
• The High Value Council Tax Surcharge
• The tax treatment of predevelopment costs
• VAT treatment of land for social housing

Autunm Budget 2026: HMRC compliance, Making Tax Digital and reporting changes

The government may also provide updates on proposals affecting how taxpayers interact with HMRC, including:

• Timely Payments in Income Tax Self Assessment
• Reporting company payments to participators
• Expansion of the Uncertain Tax Treatment regime

These could significantly affect compliance obligations and reporting requirements.

The Budget may also provide updates on the next phase of Making Tax Digital for Income Tax. From April 2027, the regime is due to expand to sole traders and landlords with qualifying income above £30,000, before extending to those with income above £20,000 from April 2028. The current relaxation of penalties for late quarterly updates and several temporary exemptions are also due to end from April 2027.

How can businesses and individuals prepare for the Autumn Budget 2026?

We do not recommend making decisions solely based on Budget speculation.

However, businesses and individuals may benefit from:

1. Reviewing planned transactions and considering whether any action may be appropriate before the Budget
2. Understanding reforms that have already been announced
3. Reassessing your tax position if tax changes are announced in the Budget