The Chancellor made some modest changes for entrepreneurs and internationally mobile professionals, and the main tax rises for individuals were aimed at savers and property owners.
The Budget was largely silent on areas of Inheritance Tax (IHT), which is helpful in providing stability. However, the lack of comment on areas such as a possible exit tax, wealth tax and further changes does leave the position open to the possibility of changes coming in the future. The picture for Capital Gains Tax (CGT) was more mixed, with no increases to the main rates, but did include some changes in relation to business assets.
The key points for individuals, trusts, entrepreneurs and businesses are outlined below:
Individuals & Succession Planning
No changes to IHT rates or allowances were announced.
The previously announced restrictions on business property relief (BPR) and agricultural property relief (APR) remain in effect from 6 April 2026, with 100% relief on up to £2.5m of qualifying agricultural and business property and 50% relief thereafter. Any unused allowance transferred to a surviving spouse on a percentage basis remains in place.
The previously announced extension of IHT to most unused pension funds and pension death benefits is still going ahead from 6 April 2027, although there are some practical changes to how the tax can be paid. There could be knock-on effects on succession planning and Wills, particularly for allocation of the reduced charitable rate of 36%. Read more about this here.
No major further changes to the taxation of offshore trusts.
New IHT rules restrict the circumstances in which liabilities can be deducted when valuing trust property. This came into effect on 28 October 2026, and trustees should consider whether they are impacted.
No response has yet been announced to the consultation on the offshore anti-avoidance rules.
No reversal of the four-year foreign income and gains regime or the residence-based IHT rules introduced from April 2025. See our article on this here.
No wealth tax or exit tax was announced. However, significantly, neither was expressly ruled out for the future.
Entrepreneurs & Business Owners
Founders’ Relief: From April 2027, qualifying founders and significant early investors will benefit from a 10% capital gains tax rate on up to £10m of lifetime gains, subject to tighter qualifying conditions than the old Entrepreneurs’ Relief. This is still under consultation, and we expect more detail to follow.
Business Asset Disposal Relief: The lifetime limit will fall from £1m to £500,000 from April 2027.
Employee share options: The Company Share Option Plan (CSOP) will be renamed EMI2 and will have a higher individual option limit and longer exercise period from April 2027.
Company distributions: From April 2028, the taxation of distributions, capital repayments, share buy-backs and some reorganisations will be reformed. This could impact owner-managed and family businesses, although protections are intended for genuine commercial transactions and family successions.
Capital allowances: Greater upfront relief will be available for qualifying investment from 2027, balanced by lower relief in later years.
US limited liability companies: The government intends to introduce relief from double taxation for UK investors in US limited liability companies and similar entities from 2028.
Property and Savings Income
Savings income and property income will be taxed at 24%, 44% and 49% from 6 April 2027. The government has provided the devolved governments of Scotland and Wales with the ability to set property income rates in line with their current Income Tax powers.
The "Mansion Tax" on residential properties worth £2m or more remains due to take effect from April 2028. In Scotland, the Scottish Government closed its consultation on the matter earlier this year, proposing to include two new Council Tax bands for homes over £1m and £2m. The changes are due to come into force in Scotland in April 2028.
A new zero rate of VAT will apply from April 2027 to sales of land to registered social housing providers, which may be helpful for landowners with larger development sites.
HMRC Tax Compliance and Enforcement
The government is providing HMRC with greater funding in relation to tax compliance, including more targeted identification of tax risks among wealthy individuals and changes to its information and inspection powers. HMRC has also proposed introducing more regular payments for Self-Assessment taxpayers from April 2029, following its consultation over the summer. We await confirmation of the exact proposal.
All in all, the Autumn 2026 Budget was quite a quiet Budget, which is helpful in providing stability for individuals, trustees, entrepreneurs and business owners looking ahead to succession planning.
In Scotland, Jenny Gilruth, Finance Secretary, is due to announce her Budget on 3 December 2026 and a further update will be published following her announcements. However, given that Inheritance Tax, Capital Gains Tax and VAT are reserved taxes, there will be no further changes there. There could, however, be changes to Income Tax, Land and Buildings Transaction Tax and Council Tax.
