Autumn Budget 2026 - on 28 October: what small businesses should be watching

The Chancellor will deliver the Autumn Budget on Wednesday 28 October 2026. HM Treasury has confirmed the date and that it will be the first Budget of the Chancellor of the Exchequer, Rt Hon John Healey MP. With the Budget a week away, here is a factual recap of where things stand today, and what small businesses and their accountants will be watching for. This post sticks to what is confirmed, not the rumor mill.

 

The current position: what is already set for 2026/27

The 2026/27 rates were set in advance, and they are the rules we are living with now:

• Personal allowance frozen at £12,570, with the basic, higher and additional rate bands unchanged.
• Dividend tax: £500-a-year dividend allowance, then 10.75% for basic-rate taxpayers, 35.75% for higher-rate taxpayers, and 39.35% for additional-rate taxpayers.
• Capital Gains Tax: 18% on gains within the basic-rate band and 24% above it, with a £3,000 annual exempt amount.
• Corporation Tax: 25% main rate on profits over £250,000, 19% small profits rate on profits of £50,000 or less, with marginal relief between.
• Making Tax Digital for Income Tax is now in force from April 2026: self-employed people and landlords above the qualifying income threshold are submitting quarterly digital updates to HMRC.

 

What small businesses and accountants will be watching

• Whether the long freeze on the personal allowance and other thresholds continues or starts to move.
• Any changes to the rates that matter most to owner-managed businesses: dividend tax, Corporation Tax, and Capital Gains Tax, including any adjustments to allowances.
• The next phases of Making Tax Digital for Income Tax: who gets brought in next and on what timetable, so smaller businesses can prepare.
• Business reliefs and investment incentives, such as capital allowances, which directly affect decisions on equipment, premises, and vehicles.
• The timing of any changes: what takes effect immediately, what applies from 2027/28, and what that means for planning done before year-end.

 

The sensible approach right now

Act on the rules as they are: keep records and filings up to date, and avoid big irreversible decisions based on speculation. Once the measures are announced on 28 October, review your position with your accountant before acting on things like dividend timing, capital expenditure, or pension contributions. The Budget sets the direction; the detail in the days after will show what it really means for your business.