30 Oct 2026
Autumn Budget 2026: What Does It Mean for Individuals and Businesses?
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The Chancellor delivered the Autumn Budget on the 28th of October 2026, announcing a range of measures affecting individuals, families, property owners and businesses across the UK.
With continued pressure on household finances and business costs, the Budget introduced targeted measures intended to provide financial support, alongside tax changes that could have longer-term implications.
While some announcements may offer short-term relief, others highlight the importance of planning ahead, particularly for those buying property, running a business or managing their family's finances.
Our legal experts at Hegarty have reviewed the key announcements to explain what the Autumn Budget 2026 could mean for you, your family and your business.
The Budget included further support for retail, hospitality and leisure businesses, with changes to business rates intended to help reduce the cost of occupying commercial premises.
Lisa Thornton, Partner and Head of Commercial Property at Hegarty, highlights the extension of business rates relief, including an increase in the rateable-value threshold for eligible businesses from £12,000 to £18,000. The Government estimates that approximately 70,000 additional businesses could benefit from having no business rates liability.
Further measures include a proposed 20% reduction in business rates for pubs, clubs and live music venues from April 2027, alongside protections intended to limit significant increases for other eligible businesses.
For commercial property owners and occupiers, these changes could influence decisions about taking on new premises, renewing leases or expanding operations. Businesses should review their eligibility for relief and consider how changes to business rates may affect their longer-term property costs.
The Budget also introduced changes that could affect business sales, succession planning and employee incentives.
Andrew Heeler, Partner and Head of Corporate Law at Hegarty, highlights the reduction in the lifetime limit for Business Asset Disposal Relief (BADR) from £1 million to £500,000 for qualifying disposals made from April 2027. The applicable Capital Gains Tax rate will remain at 18%, but the reduced allowance could increase the tax payable by some business owners when selling their business.
The Chancellor also announced plans for a new Founders' Relief, offering a 10% Capital Gains Tax rate on up to £10 million of qualifying lifetime gains. However, further details are needed to establish which business owners will qualify.
Alongside these tax changes, the Government announced an extension of Enterprise Management Incentive (EMI) schemes, potentially allowing more companies to offer tax efficient share options to employees.
For business owners considering a sale, restructuring or succession planning, understanding the implications of these announcements will be important when making future decisions.
Although employment law was not a major focus of the Budget, employers will need to prepare for an increase in staffing costs.
David Brown, Employment Law Solicitor at Hegarty, highlights the confirmed 3.9% increase in the National Living Wage to £13.21 per hour from the 1st of April 2027. Employers should account for this when reviewing staffing budgets and consider the potential impact on existing pay structures.
The Government also confirmed plans to restrict non-compete clauses in employment contracts, with further details expected in 2027.
Alongside the Budget, employers should remain aware of wider reforms under the Employment Rights Act 2025, including changes to unfair dismissal rights, Employment Tribunal time limits and workplace harassment obligations.
Reviewing employment contracts, workplace policies and dismissal procedures now can help businesses prepare for these changes and reduce the risk of future disputes.
For those looking to take their first step onto the property ladder, the Budget introduced measures intended to make saving for and purchasing a home more accessible.
Hegarty's Residential Conveyancing team highlights three key announcements:
These measures could help some first-time buyers enter the property market sooner. However, buyers should still consider mortgage affordability, additional purchasing costs and the conditions attached to any Government support scheme.
The Budget's changes to the taxation of rental income could also have wider implications for private landlords.
From April 2027, tax rates on rental income will increase by two percentage points, potentially reducing the returns landlords receive from their property investments.
Kally Singh, Senior Partner and Head of Dispute Resolution at Hegarty, highlights that increased financial pressures could prompt some landlords to sell their rental properties, potentially leading to more possession proceedings.
However, landlords considering recovering possession must comply with the relevant legislation, including changes introduced by the Renters' Rights Act 2025.
Seeking legal advice early can help landlords understand their options, follow the correct procedures and avoid unnecessary complications when selling a tenanted property.
Although the Budget introduced fewer changes to private client taxation than some had anticipated, frozen tax thresholds could still have important implications for estate planning.
Greg Baker, Partner in Hegarty's Wills, Trusts and Probate team, highlights the continued freeze on the Inheritance Tax nil-rate band at £325,000 until April 2031.
The additional residence nil-rate band, which may apply when a qualifying home is passed to direct descendants, will also remain at £175,000, subject to a reduction for estates valued at more than £2 million.
While the allowances themselves have not been reduced, keeping them frozen could mean that more estates become liable for Inheritance Tax as property values and other assets increase.
Income Tax thresholds also remain frozen, while tax rates on savings income are set to increase from April 2027.
These changes reinforce the importance of reviewing existing estate planning arrangements, ensuring Wills remain up to date and understanding how assets may be treated for Inheritance Tax purposes.
For individuals and families, the Budget brought some reassurance, with fewer changes to personal taxation than had initially been anticipated.
Emma McGrath, Partner and Head of Family Law at Hegarty, highlights that while the main rates of Income Tax, employee National Insurance contributions and VAT remain unchanged, changes to the taxation of savings and property income could still affect household finances.
For couples going through separation or divorce, tax changes can influence the value of assets, disposable income and the financial arrangements being negotiated.
Where a financial settlement is still being considered, it is important to review both parties' capital and income positions, including any potential tax liabilities, to ensure that proposed arrangements remain appropriate.
Those who have already finalised their financial settlements should also be aware that subsequent changes to tax legislation will not ordinarily provide sufficient grounds, on their own, to reopen a final financial order.
Seeking legal advice at an early stage can help individuals understand their options and work towards financial arrangements that reflect their circumstances and future needs.
The Autumn Budget 2026 introduced a combination of targeted financial support and changes that could affect longer-term financial and legal planning.
While measures such as business rates relief and support for first-time buyers may offer opportunities for some, changes to taxation and employment obligations could require individuals and businesses to review their existing arrangements.
With several announcements due to take effect over the coming years, understanding how these changes may affect your circumstances can help you make informed decisions.
At Hegarty, our experienced legal teams provide clear, practical advice tailored to your needs. Whether you are planning for the future, buying or selling property, running a business or dealing with a family matter, we are here to help.
If you have any questions about how the Autumn Budget 2026 may affect you or your business, contact Hegarty to discuss your circumstances.
Whatever legal support you need, our experienced and highly skilled solicitors and legal advisors are here to help. With expertise across a wide range of legal areas, we provide clear, practical advice tailored to you. What sets us apart is our commitment to understanding your needs and delivering the best possible outcome with a personal touch.
