Bitesize Insights · Budget 2026
The Budget brings changes to exit planning, investment and operating costs. Here are five announcements to discuss with your finance team and tax adviser.
Five decisions to review
Revisit the tax assumptions
The government plans to reduce the Business Asset Disposal Relief lifetime limit from £1 million to £500,000 for qualifying disposals from 6 April 2027. Special provisions cover certain earlier contracts and reorganisations, so signing before that date does not automatically secure the previous limit.
Check the proposed new relief
Founders’ Relief would apply 10% capital gains tax to up to £10 million of lifetime qualifying gains, targeting founders and significant early investors in high-growth, innovative UK companies. It is intended for qualifying disposals from 6 April 2027, but conditions remain subject to consultation and legislation. Read our Founders’ Relief eligibility update.
Update your staffing forecast
The National Living Wage is announced to rise to £13.21 per hour from 1 April 2027. Review affected salaries, hours and associated employment costs when updating your budget.
Check the relevant allowances
The main-rate first-year allowance is planned to increase to 50% for qualifying expenditure from 1 January 2027. The main writing-down allowance would fall to 12% from 1 April 2027 for corporation tax and 6 April 2027 for income tax. Check which allowance applies before estimating an investment’s cash benefit.
Review business rates locally
The announced package covers retail, hospitality and leisure properties in England, including relief changes and a two-year real-terms freeze. Confirm the effect on your specific properties before building savings into forecasts.
The Consult EFC view
Turn the announcements into an action list: update your cash forecast, test investment plans and revisit exit assumptions with your tax adviser. Keep proposed changes separate from enacted rules.
For a wider review, explore cash flow forecasting and exit planning support.
Official detail: HMRC’s tax legislation overview and the Treasury Budget announcement.
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Over 12 years across Big Four audit, Investment Banking, and corporate advisory. Kish works with SaaS founders, tech companies, and ambitious UK SMEs from £1M to £50M in revenue on fundraising, valuations, exit planning, and financial strategy. ICAEW regulated. Big Four trained. Based in London.