Following on from substantial changes in the previous Budget to business tax, the Chancellor made very few changes to the way organisations will be taxed.
However, she did confirm that from April 2026, the main rate of writing down allowance would be reduced by four percentage points to 14 per cent.
To ensure that businesses weren’t too disadvantaged, a new first-year allowance of 40 per cent for main‑rate assets will be introduced to maintain the Government’s commitment to help businesses invest.
For those looking to exit their company there was another blow, however, as the Government will restrict Capital Gains Tax relief on Employee Ownership Trusts from 100 per cent to 50 per cent.
Although not a tax per se, the biggest change for many businesses will be increases to the National Minimum and National Living Wage.
From 1 April 2026, the rates will increase as follows
- National Living Wage – £12.71 per hour (up 4.1 per cent)
- National Minimum Wage for 18-20 year olds – £10.85 (up 8.5 per cent)
National Minimum Wage for 16-17 year olds and apprentices – £8.00 per hour (up 6 per cent)