The Autumn Budget 2026 introduces further tax changes affecting high-net-worth individuals, property owners, investors and business owners. Key measures include higher taxes on savings and property income, a reduction in Business Asset Disposal Relief and a new tax incentive for qualifying business founders.
Capital Gains Tax rates remain unchanged, as do Stamp Duty Land Tax rules and the taxation of company-owned property. The proposed High Value Council Tax Surcharge, or mansion tax, will also proceed as planned from April 2028.
However, tax on savings and property income will increase by a further two percentage points from April 2027. Combined with the previously announced two-point increase, additional-rate taxpayers will face a 49% rate on these income sources.
Cash savers will retain the full £20,000 annual ISA allowance after the Government abandoned plans to reduce the Cash ISA limit to £12,000. A new first-time buyer ISA will also replace the Lifetime ISA for new savers from 6 April 2029, although existing holders can retain their accounts.
Pension beneficiaries will benefit from the removal of the two-year payment rule from 28 October 2026. Previously, delays in paying pension death benefits could result in otherwise tax-free payments becoming taxable.
For business owners, the lifetime limit for Business Asset Disposal Relief will fall from £1 million to £500,000 per individual from April 2027. This will increase potential Capital Gains Tax liabilities for some entrepreneurs selling businesses or qualifying shares.
A new Founders’ Relief will offer a 10% Capital Gains Tax rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies. The relief is expected to apply from April 2027, subject to eligibility requirements, including a minimum 25% ownership of original share capital and a five-year holding period.
Smaller retail, hospitality and leisure businesses will benefit from an increase in the business rates relief threshold from £12,000 to £18,000. Other businesses in these sectors will receive two years of protection against above-inflation increases.
Changes to capital allowances will affect investment decisions. The main writing-down allowance will decrease to 12% from April 2027, while the main-rate first-year allowance will increase to 50% from January 2027, providing greater upfront tax relief on qualifying expenditure.
Other previously announced measures remain in place, including the inclusion of unused pension funds and death benefits within inheritance tax from April 2027 and the continued freezing of tax thresholds.
Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.
