Having committed to holding just one major ‘fiscal event’ each year, this Statement provided an opportunity to update the nation on the progress of her economic plan. Her conclusion was clear. She believes she has “the right economic plan for this country” and that it has “restored economic stability” with falling inflation and borrowing, rising living standards, increased funding for the NHS, more money in people’s pockets and a growing economy. That said, the jeers from opposition benches made clear that not everyone shared her assessment of the progress made so far.

To everyone’s relief, no new tax changes were announced today. However, several measures introduced in the previous Budget are due to take effect in the coming months. We explored these in detail in our 2025 Autumn Budget report which can be found here , but as a quick recap, the main points to be aware of are as follows:

Inheritance Tax

From 6 April 2026, 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) will be capped at £2.5 million per person. Any transfer value above this cap that would otherwise qualify for APR/BPR will instead receive a reduced inheritance tax relief of 50%. This £2.5 million cap will be transferable between spouses. Affected businesses may wish to accelerate their tax planning before the changes come into full effect if time permits (albeit transitional rules already apply in some cases and, for those who have not already established a specific plan of action, there may be insufficient time to implement changes before April).

Dividends

From 6 April 2026, the basic and higher dividend tax rates will each increase by 2%. As a result, the basic rate will rise from 8.75% to 10.75%, and the higher rate will rise from 33.75% to 35.75%. The additional rate will remain unchanged at 39.35%. Therefore, owner managed businesses should consider whether to make a dividend payment before the rates rise in April.

Capital allowances – writing down allowance

From April 2026 it has been confirmed that writing down allowances on main pool assets will be reduced from 18% to 14% per annum. This means that companies/unincorporated businesses will receive full relief for plant and machinery and other main pool items at a slower rate than before this date.

Companies will still be able to claim the full £1 million Annual Investment Allowance (AIA) and 100% full-expensing relief on new qualifying plant and machinery. Therefore, this is only likely to affect businesses with large main pool balances or those purchasing cars that qualify as main pool expenditure.

Capital allowances – new first year allowance

A new first year allowance was introduced in January 2026. This new allowance allows companies to claim a 40% allowance on the cost of assets (excluding cars) which are leased out. It is also available to unincorporated businesses. The remaining 60% will go into the main pool and be subject to 14% WDA per annum on a reducing balance basis. This is not claimable on second-hand assets or assets which are leased to overseas customers.

Making Tax Digital

New reporting requirements for sole traders and landlords with qualifying income over £50,000 come into force on 6 April 2026. Affected taxpayers may wish to speak with their tax advisers for assistance and support if they have not done so already.

Venture Capital Trusts (VCTs) Tax Relief

From 6 April 2026, income tax relief on investments into Venture Capital Trusts (VCTs) will be reduced from 30% to 20%. The annual investment limit will remain at £200,000, and the relief will continue to be clawed back if the VCT shares are sold within five years. Dividends received from VCTs will continue to be tax free, and any gains realised on the disposal of VCT shares will remain exempt from Capital Gains Tax as long as they retain their ‘approved’ status.

Enterprise Management Incentive Schemes (EMI)

From April 2026 the eligibility requirements of EMI schemes are being expanded. The expansions include.

1. Increasing the limit on the maximum value of options a company can grant over its shares from £3 million to £6 million
2. Increasing the size limits of the company granting the options: those with gross assets of £120 million and 500 employees will now be able to qualify (up from £30 million and 250 employees respectively)
3. Extending the period in which the option can be exercised from 10 to 15 years.

Voluntary National Insurance Contributions for non – residents

Currently, non residents working abroad can pay voluntary Class 2 National Insurance at £3.50 per week, instead of the much higher Class 3 rate of £17.75. From 6 April 2026, they will no longer be allowed to pay Class 2. Instead, they will only be able to pay Class 3, and only if they have previously lived in the UK for at least 10 years or have a 10 year UK National Insurance record.

VAT and indirect taxes

From 1 April 2026, a new VAT relief will apply to business donations of goods to charities. Businesses will no longer have to account for output VAT on donated items. The relief covers goods worth up to £100 each, with a higher limit of £200 for essential items such as laptops and white goods.

If you would like to discuss any of today’s announcements in more detail, please do not hesitate to contact us .

Download our Autumn 2025 Budget Report here .