From higher employment costs and changes to business tax reliefs to new opportunities for entrepreneurs, B4 Member Price Bailey examines the key announcements from the Autumn Budget 2026 and what they could mean for businesses and individuals.
Following Chancellor John Healey’s Autumn Budget on 28 October 2026, chartered accountants Price Bailey have published a comprehensive guide to the tax changes, reliefs and financial measures that businesses and individuals need to understand.
Delivered under the theme “Breathing Space now, Hope for the Future”, the Budget sought to balance immediate support for households and businesses with longer-term reforms to taxation, investment and economic growth.
While some measures offer welcome relief, others introduce additional costs and considerations for employers, business owners, investors and individuals planning for the future.
We highlight some of the key announcements from Price Bailey’s report.
Employment Costs: National Living Wage Rises Again
One of the most significant announcements for employers is the increase in the National Living Wage and National Minimum Wage from 1 April 2027.
The new hourly rates will be:
- £13.21 for workers aged 21 and over.
- £11.27 for workers aged 18–20.
- £8.31 for workers aged 16–17 and eligible apprentices.
Employer National Insurance contributions will remain at 15%, with the Secondary Threshold frozen at £5,000 until April 2031.
For businesses employing significant numbers of people, particularly in hospitality, retail and other labour-intensive sectors, these measures will remain important considerations when forecasting staffing costs.
Corporation Tax: Rates Remain Unchanged
The main rate of Corporation Tax will remain at 25% for companies with profits exceeding £250,000.
Smaller companies with profits of £50,000 or less will continue to benefit from the 19% small profits rate, with marginal relief applying between these thresholds.
However, changes to capital allowances will affect how businesses receive tax relief on investment.
From April 2027, the main Writing Down Allowance will fall from 14% to 12%.
To help offset this, the First Year Allowance for qualifying expenditure will increase from 40% to 50% from 1 January 2027.
The Annual Investment Allowance will remain at £1 million, while qualifying companies will continue to benefit from full expensing on eligible new plant and machinery.
For businesses considering investment in equipment, technology or infrastructure, understanding the timing and eligibility of expenditure will be particularly important.
Business Rates: Additional Support for the High Street
The Chancellor announced an increase in the Small Business Rate Relief threshold, with a further 70,000 retail, hospitality and leisure businesses expected to pay no business rates.
This will be particularly relevant to independent businesses operating across Oxfordshire’s towns and high streets.
Combined with continued pressures on wages, energy and other operating costs, business rates relief could provide valuable support to qualifying businesses.
Entrepreneurs and Business Owners: Changes to Capital Gains Tax Relief
One of the most significant changes for business owners concerns Business Asset Disposal Relief.
From 6 April 2027, the lifetime limit for qualifying gains will be reduced from £1 million to £500,000.
The applicable Capital Gains Tax rate will remain at 18%.
This could have important implications for entrepreneurs considering selling a business or planning their exit strategy.
However, the Budget also introduces a potentially significant new opportunity.
New Founders’ Relief for High-Growth Businesses
The government is consulting on a new Founders’ Relief designed to support founders and significant early investors in innovative, high-growth UK companies.
Under the proposals, qualifying share disposals would attract a 10% Capital Gains Tax rate, with a lifetime limit of £10 million in gains per individual.
The proposed relief would apply to qualifying disposals from 6 April 2027, although the detailed eligibility conditions remain subject to consultation.
For Oxfordshire’s substantial innovation, science and technology community, this is a development worth watching closely.
Pension Salary Sacrifice: Important Changes from 2029
From April 2029, only the first £2,000 of annual employee pension contributions made through salary sacrifice will be exempt from National Insurance.
Contributions above this amount will become subject to employer and employee National Insurance contributions.
Income Tax relief will continue to apply, subject to the usual limits, and employer pension contributions will remain exempt from National Insurance.
Businesses operating salary sacrifice schemes will need to consider the potential implications for employee benefits and payroll costs.
Personal Tax: Thresholds Frozen Until 2031
The Personal Allowance will remain at £12,570, while the higher rate Income Tax threshold will stay at £50,270.
These thresholds will now remain frozen until April 2031.
The additional rate threshold will remain at £125,140.
As earnings increase over time, frozen thresholds can bring more individuals into higher tax bands, a process commonly referred to as fiscal drag.
The Budget also confirms higher tax rates on property and savings income from April 2027.
The new rates will be:
- Basic rate: 24%.
- Higher rate: 44%.
- Additional rate: 49%.
These changes will be particularly relevant to landlords, savers and individuals receiving income from multiple sources.
Inheritance Tax and Pensions: Changes to Estate Planning
From 6 April 2027, unused pension funds and certain pension death benefits will be brought within an individual’s estate for Inheritance Tax purposes.
Price Bailey highlights the potential significance of this measure for individuals with substantial pension savings.
The standard Inheritance Tax nil rate band will remain frozen at £325,000 until April 2031, with the residence nil rate band also frozen at £175,000.
For business and agricultural property, 100% relief will continue to apply to qualifying assets up to a combined £2.5 million limit per individual, with 50% relief available above that threshold.
These measures reinforce the importance of reviewing succession and estate planning arrangements.
VAT and Digital Reporting: Businesses Face Further Changes
The VAT registration threshold will remain at £90,000, with the deregistration threshold at £88,000.
However, businesses should prepare for further changes to VAT administration.
From October 2027, qualifying online marketplaces will become responsible for collecting VAT on certain sales made through their platforms.
From April 2029, VAT invoices will need to be issued and received in a prescribed electronic format.
The government has also announced changes to the VAT treatment of business-to-business services supplied from overseas, which could create additional costs for some non-VAT-registered UK businesses.
These developments underline the growing importance of effective accounting systems and digital financial processes.
Other Measures Worth Noting
The Price Bailey report also highlights several additional developments:
- ISA allowances: The annual ISA allowance remains at £20,000, with the proposed reduction in the cash ISA limit abandoned.
- Trading Allowance: Increasing from £1,000 to £3,000 from April 2027.
- Electric vehicles: A new mileage-based Electric Vehicle Excise Duty will apply from April 2028, including a 3p-per-mile charge for battery electric vehicles.
- Company cars: Benefit-in-kind rates will increase for zero-emission vehicles from 4% to 5% in 2027/28.
- High-value homes: Properties valued at £2 million or more will face an additional Council Tax surcharge from April 2028.
- Employee share schemes: Changes to Company Share Option Plans and Enterprise Management Incentives aim to improve flexibility for qualifying businesses.
What Does the Budget Mean for Oxfordshire Businesses?
The Autumn Budget presents a mixed picture.
There are welcome measures supporting smaller businesses, investment and entrepreneurial activity, alongside continuing pressures from employment costs, frozen tax thresholds and changes to existing reliefs.
For Oxfordshire’s diverse business community, from independent retailers and hospitality operators to established professional services firms and high-growth technology companies, the impact will vary considerably.
What is clear is that businesses should take the opportunity to review their financial plans, understand which measures apply to them and prepare for the changes ahead.
Read Price Bailey’s Full Autumn Budget 2026 Report
Price Bailey’s comprehensive 18-page guide provides further detail on personal taxation, employment, Corporation Tax, capital allowances, Capital Gains Tax, Inheritance Tax, VAT and other measures.
The report also includes detailed tax rates and allowances for 2027/28.
B4 would like to thank Price Bailey for sharing this valuable analysis with our business community.
To learn more about Price Bailey and its accountancy, tax and business advisory services, visit:
Source: Price Bailey, “Key Points from the Budget 2026”, published following the Autumn Budget on 28 October 2026. This article summarises selected measures from the report and is intended for general information rather than individual tax advice.