With such big spending commitments, tax rises were expected, but what was delivered was nowhere near as significant as earlier speculation had suggested and, in places, remains quite vague.
From April 2027, the lifetime limit for capital gains eligible for Business Asset Disposal Relief (BADR) will be reduced from £1 million to £500,000. This means that any capital gains on an eligible business sale above this new, lower threshold, will be taxed at a rate of 24 per cent for higher-rate taxpayers, instead of 18 per cent enjoyed up to £500,000.
The Chancellor also confirmed plans to review and update the tax rules governing distributions paid by companies to individual shareholders.
The aim is to create a fairer system by limiting arrangements that allow some taxpayers to extract profits in a more tax-efficient manner than others.
Reforms will protect tax treatment for genuine ownership changes, including family business succession, and could offer more generous demerger reliefs.
The Government will consult on the details before implementation in April 2028, but the full details of this change remain sparse.
In a more immediate change, from October 2027, online marketplaces must collect VAT on sales by UK businesses selling more than £90,000 through the platform.
Not a new tax, but a new way of paying tax, will also be introduced for Self Assessment taxpayers. From April 2029, they will pay liabilities in smaller, more frequent instalments throughout the year.