Autumn Budget 2026:
What our tax team will be watching for

This Budget is likely to be a significant one. It will be John Healey’s first Budget as Chancellor and the first Budget of Andy Burnham’s government.

With the government under pressure to balance its spending commitments, maintain confidence in the public finances and support economic growth, attention is increasingly turning to where further tax changes could emerge.

While nothing is confirmed until the Chancellor delivers the Budget, there are several areas our tax team will be watching particularly closely: Capital Gains Tax and business sales, pensions, Inheritance Tax, director remuneration and business taxation.

In this article, we explore why these areas are in focus, what changes could potentially be announced and what they could mean for taxpayers and businesses.

1. Capital Gains Tax and business sales

Oscar Wingham, Tax Partner

Capital Gains Tax seems to be to be high on the government’s agenda.

The main CGT rates are currently 18% and 24%, while Business Asset Disposal Relief (BADR) is now taxed at 18%. There has been continued speculation about whether CGT rates could move closer to Income Tax rates and whether there could be any further change to BADR.

What could it mean?

For those considering the sale of assets such as second homes, shares or other investments, a rise in CGT could have a significant impact on the tax ultimately payable.

Meanwhile, for business owners planning to sell, even a relatively small change in the CGT rate could have a substantial impact on the amount they ultimately receive from a sale.

Likelihood: Medium–High

Oscar says:

“Any changes to CGT rates could have an impact on both private clients and business owners. If rates were brought closer to income tax rates, it could influence decisions around when to dispose of investments or crystallise gains on more liquid assets, such as investment portfolios, shares or other readily saleable holdings. Some individuals and businesses may therefore consider whether to realise gains before the Budget, while others may choose to hold onto assets for longer. The key question is whether making a disposal now is appropriate in your individual circumstances. For business owners, however, any decision to sell a business or dispose of significant assets should be driven primarily by commercial considerations, not tax alone.”

“For business owners already in the process of a sale, I would recommend understanding the potential tax implications now rather than waiting until Budget Day. That does not necessarily mean rushing to complete a transaction, but it does mean having a clear understanding of your position under the current rules and considering how different potential outcomes could affect the net proceeds from a sale or disposal.”

2. Pensions

Ammad Khan, Senior Tax Manager

Pensions are another area which could attract attention.

Significant changes are already planned, including the introduction of rules bringing unused pension funds within the scope of Inheritance Tax from April 2027. There has also been speculation about possible changes to pension tax relief and salary sacrifice.

What could it mean?

Changes could affect higher earners, directors and employees making substantial pension contributions, as well as employers operating salary sacrifice schemes.

Likelihood: Medium

Ammad says:

“Pension planning is a long-term decision, so I would urge people not to make major changes simply because of Budget speculation. However, if you’re already considering making a significant contribution, it is worth reviewing your available allowances and understanding how the current rules apply before the Budget.”

3. Inheritance Tax

Leo Sarkeshik, Personal Tax Manager

Inheritance Tax remains an important area following the substantial changes already announced.

The rules around Business Property Relief and Agricultural Property Relief changed in 2026, while unused pension funds are due to come within the IHT regime from April 2027.

What could it mean?

This could be particularly important for:

• Family business owners
• Farmers and landowners
• Individuals with substantial pension funds
• Families with larger estates

Likelihood of further changes: Medium

Leo says:

“The important point for families is that significant changes to Inheritance Tax are already happening, so estate planning should not be put on hold while we wait for the Budget. Business owners and individuals with larger estates should understand how the existing and forthcoming rules could affect their families and consider whether their current plans still achieve what they want them to.”

4. Director remuneration

Ben Hodges, Tax Advisor

For owner-managed businesses, one of the most practical questions is likely to be how directors should take money from their companies.

Dividend tax rates have already increased from April 2026, making the balance between salary, dividends, pension contributions and retained profits increasingly important. Could there be further changes?

What could it mean?

A change to dividend taxation or other personal tax rates could alter the most tax-efficient way for directors to extract profits.

Likelihood: Medium

Ben says:

“For directors, I think the key message is to look at remuneration as a whole rather than focusing on one particular tax rate. Salary, dividends, pension contributions and retained profits all interact, so what works for one director may not be right for another. If you are planning a significant dividend or reviewing your remuneration strategy, it makes sense to look at the numbers before the Budget.”

5. Business taxation

Paul Woodward, Director of Corporate Tax

For businesses, the Budget isn’t simply about Corporation Tax.

Companies will also be watching business rates, employer costs, capital investment, R&D reliefs and incentives for growth.

The government has already announced targeted business rates reductions for some sectors, while further detail on business rates and regional funding is expected.

What could it mean?

Businesses need to understand not only whether tax rates change, but whether the overall environment makes it easier or harder to:

• Invest
• Employ people
• Expand
• Acquire another business
• Invest in premises or equipment

Likelihood of further business tax measures: Medium

Paul says:

“For businesses, certainty is almost as important as the tax rate itself. Companies need to be able to make investment and employment decisions with confidence. I will be looking particularly closely at whether the Budget provides genuine incentives for businesses to invest and grow, rather than simply increasing the overall cost of doing business.”