Business
This is a Budget for the working people of Britain, for British businesses, big and small,” said Chancellor John Healey, as he introduced the 2026 Autumn Budget.
As “global economic storms” continue to drive in running costs, the Chancellor announced a series of measures to cut the cost of doing business while maintaining fiscal discipline.
Here are some changes coming your way as a small business owner.
New Founders Relief: A new Capital Gains Tax Founders’ Relief will be offered to people who start their own business, giving them a lower capital gains rate of 10 per cent for up to £10m of lifetime gains.
Support for female founders: To help female-led businesses access growth capital, the government is introducing a scale-up programme to remove early-stage fundraising barriers. This is supported by a £100 million commitment from the British Business Bank and wider initiatives to improve access to investment and support emerging fund managers.
The government will also pilot a Young Entrepreneurs Allowance to help applicants cover living costs during their first year of business.
Business Asset Disposal Relief (BADR): The Chancellor announced a cut to the lifetime limit on gains eligible for BADR, a relief that potentially reduces the amount of Capital Gains Tax you pay when you sell (or ‘dispose of’) all or part of your business. Under the changes, you would be eligible for BADR only on gains of up to £500,000, down from £1 million.
Trading Allowance increased from £1k to £3k: In a boost to freelancers and side-hustlers, the trading allowance will be tripled from £1,000 to £3,000, starting from 6th April 2027. It creates genuine room to grow before tax becomes a consideration.
Fuel duty: The freeze on fuel duty, which was supposed to end in December 2026, has been extended until 1st July 2027.
Small Business Rates Relief: From April 2027, the threshold for full Small Business Rates will increase from £12,000 to £18,000. Tapered relief will rise from £15,000 to £21,000.
Mileage rate: The government announced an increase to mileage rates. Mileage rates help you claim tax relief for business journeys you make in your own vehicle.
The mileage rate increase from 45p to 55p per mile for journeys up to 10,000 miles per tax year, which was introduced from 6th April 2026, has been made “permanent”, while the rate for each mile over 10,000 miles per tax year is set to increase from 25p to 35p.
You can find the full Budget 2026 report here
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