2025 Autumn Budget

Following months of speculation, and being delivered a month later than usual, this Budget Statement has yet again been subject to much rumour and speculation. Such speculation has not been easy for business owners, or their employees, with many holding off on making decisions until the outcome of today’s statement.

Our team of business lawyers will digest and review these proposed changes over the coming days, but we have summarised briefly below some of the key changes.

In some good news for business owners, whilst we know the rate of Business Asset Disposal Relief is increasing to 18% in April 2026, the Chancellor has opted not to increase Capital Gains Tax further. Those business owners looking to sell their business in the short term have until 05 April 2026 to secure the current rate of Business Asset Disposal Relief at 14%.

For employees, whilst there was a rumour a month or so ago that Income Tax rates could increase, we know that neither Income Tax and National Insurance rates are increasing as a result of this Budget. The thresholds have however, been frozen for another 3 years so until 2031.

National Living Wage and National Minimum Wage rates are increasing again in April 2026. For those aged 21 or over, to £12.71 and for those aged between 18 to 20, to £10.85. With the greater increase proportionally in the rate for those 18-20, this is another step towards having one minimum wage rate.

Salary Sacrifice schemes, useful for both employers and employees, will change so that the maximum amount employees can sacrifice from their salary before NI is chargeable will be capped at £2k each year. Such changes are not however, due to take effect until 2029.

Enterprise Management Incentive schemes offer qualifying businesses the opportunity to provide a tax-efficient share option scheme for their employees, which helps not only recruitment but also the retention of key employees. The Chancellor announced today that the eligibility limits on EMI schemes will be lifted which will allow more companies, both start-ups and scale-ups, to benefit from such schemes.  

Now that the Budget has happened, whilst not providing business owners with a crystal ball we at least have a better idea of the landscape we’re working in over the next 11 months or so until the next one.