3 important Autumn Budget changes that could significantly affect business owners

11 November 2026

If you own and run a business, there’s a good chance you’re constantly keeping an eye on several financial priorities at once.

For instance, while managing your company’s day-to-day cash flow, you might also need to prepare for tax bills and ensure your personal circumstances are accounted for.

Now, the 2026 Autumn Budget – which we covered in detail in a previous update – has introduced several changes that could affect each of these areas. 

While some won’t take effect for several years, understanding them now could give you more time to prepare and make informed decisions about your business.

Here are three important changes from the 2026 Autumn Budget that could significantly affect business owners.

1. Your Self Assessment tax payments could become more frequent

Under the existing Self Assessment system, you can normally make two advance payments towards your next tax bill, with one due on 31 January and the other on 31 July.

Each payment is typically equal to half of the tax you owed in the previous year.

On top of this, you generally need to make “payments on account” unless your previous bill was less than £1,000 or you paid more than 80% of the tax you owed through another method, such as PAYE.

What’s changing

From April 2029, the government plans to replace these larger payments on account with smaller, more frequent payments made during the tax year in which you earn the income.

While the exact payment schedule is yet to be confirmed, the government has stated that payments are expected to be automated and you should be able to update the amount online if your circumstances change.

2. Self-employed fathers and partners will be entitled to parental pay

If you’re self-employed and need to take time away from work when your partner gives birth, you won’t currently have the same access to paid support as an employee.

What’s changing

From April 2029, eligible self-employed fathers, partners, and adopters will be able to access two weeks of parental pay.

As of 2026/27, Statutory Paternity Pay for eligible employees stands at £194.32 a week, or 90% of average earnings, whichever is lower. The amount available under the new system in 2029 may be different.

While this could offer valuable support, you may still experience a significant loss in income while you’re away from your business.

Due to this, you may want to consider:

• How much expenditure you would need to cover during your time off
• Whether your business could continue generating income without you
• Who could manage clients and employees in your absence.

Planning in advance could enable you to step away from the company without worrying about the financial repercussions, even with the additional support mentioned in the Budget.

3. The Business Asset Disposal Relief lifetime limit will fall to £500,000

Perhaps one of the most significant Budget announcements for business owners is the change to Business Asset Disposal Relief (BADR).

BADR can reduce the rate of Capital Gains Tax (CGT) you pay when you dispose of qualifying business assets.

This could include selling part or all of a business or offloading shares in your company, provided you meet the right conditions.

What’s changing

In 2026/27, qualifying gains within the BADR lifetime limit are typically taxed at 18%, while the limit stands at £1 million. From 6 April 2027, this will fall to £500,000. 

Remember, this is a lifetime limit, meaning previous BADR claims will count towards the new £500,000 maximum.

So, if you’ve previously claimed BADR on £300,000 of qualifying gains, you would only have £200,000 of the new limit remaining.

This change could make a meaningful difference if you expect a large gain when you eventually sell your business.

For example, if you make a qualifying gain of £800,000 and haven’t previously claimed BADR, the current £1 million limit could mean the full £800,000 qualifies for the 18% rate, creating a CGT bill of £144,000 before considering other allowances.

However, after April 2027, only the first £500,000 would qualify. If the remaining £300,000 were subject to the 24% main rate of CGT, your total bill would be £162,000 – an £18,000 increase.

The rate you will actually pay depends on factors such as your taxable income and previous BADR claims. This is why it can be so beneficial to speak to a financial planner before selling your business.

We could help you review decisions as part of your wider financial plan rather than considering each one on its own. And when specialist advice is required, we could work with your accountant to ensure your exit strategy supports your future goals.

Get in touch

If you’re a business owner and would like support preparing for the changes announced in the recent Autumn Budget, please get in touch.

Email [email protected] or call 0161 8080200 to speak to us.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. 

The Financial Conduct Authority does not regulate tax advice.