Autumn Budget 2026 for businesses

In this article we look at the key tax changes for businesses announced by Chancellor John Healey in the 2026 Autumn Budget.

The Budget delivered a broad package of targeted changes affecting business investment, corporate transactions and tax administration, rather than fundamental reform of the business tax system.

Changes to capital allowances include an increase in the first year allowance for qualifying expenditure from 40% to 50%, alongside a further reduction in the main writing down allowance rate from 14% to 12%.

Other significant measures include making the foreign branch exemption mandatory, reforming the taxation of company distributions and repayments of capital, and introducing a new digital securities transfer tax.

There were also a number of measures aimed at simplifying the tax system and reducing administrative burdens. These include removing the R&D claim notification requirement, simplifying the Additional Information Form and making technical improvements to the venture capital schemes.