Q&A: Aspects of the Autumn 2026 Budget and what it means for you

New support for businesses, entrepreneurs and first-time buyers, plus higher wage costs, all feature in the Autumn Budget announced on 28 October 2026. For business owners and property clients, the practical impact will depend on eligibility, timing and how the measures work together.

Here, we answer some of the questions you may be asking and consider what the announcements mean for your next steps.

Q: What is Founders’ Relief, and could an existing business qualify?

A: The proposed relief offers a 10% Capital Gains Tax rate on up to £10 million of lifetime qualifying gains from share disposals on or after 6 April 2027. It represents a shift in government policy to narrow and target tax incentives specifically toward hyper-growth and high-tech scale-ups, with detailed eligibility rules subject to technical consultation.

An existing business is not excluded if it was established before the announcement. A founder who started a business in 2015 could potentially qualify for Founders’ Relief on a future disposal, provided the relevant conditions are met. This does not mean earlier completed disposals will qualify retrospectively.

The proposed tests include a 25% shareholding when trading or preparations began, a minimum five-tax-year holding period, UK residence requirements and demanding company size, growth and innovation criteria. It is therefore not a general 10% rate for all business sales.

Founders’ Relief will run alongside Business Asset Disposal Relief (BADR) as a separate scheme; the latter will continue to exist after 6 April 2027, although its lifetime limit is reduced from £1 million to £500,000 – and BADR criteria will still need to be met.

Anyone considering an exit should review eligibility and the interaction with other reliefs with their tax and legal advisers before agreeing the transaction structure or timetable.

Q: Will business rates relief offset those higher costs?

A: Some retail, hospitality and leisure businesses in England will benefit from more generous Small Business Rate Relief from April 2027. For qualifying properties, the rateable value threshold for full relief will rise from £12,000 to £18,000, with tapered relief extending to £21,000 – up from £15,000.

This creates a mixed picture: lower premises costs may provide breathing space while higher wages put further pressure on margins. The balance will vary considerably between businesses, depending on their staffing levels, premises and eligibility for relief.

Owners should assess the combined effect before making decisions about hiring, expansion or taking on a new lease. The announcement is not a blanket exemption for every business in these sectors.

Q: How will the National Living Wage increase affect employers?

A: From 1 April 2027, the National Living Wage for workers aged 21 and over will rise by 3.9% to £13.21 an hour. Minimum wage rates for younger workers and eligible apprentices will also increase by 3.9%.

While welcome for employees, the increase will add to payroll costs, particularly for businesses with large numbers of staff paid at or near the minimum wage. It may also create pressure to maintain pay differentials for more experienced employees.

For some employers, this could mean reconsidering recruitment plans or the affordability of entry-level roles. Businesses should budget for the full employment cost and review pay arrangements ahead of April. Any proposed changes to contractual hours or terms need careful handling and appropriate consultation.

Q: What does the new First Time Buyer ISA mean for buying a home?

A: The new ISA is due to launch in April 2029, replacing the Lifetime ISA for new savers. It will allow contributions of up to £4,000 a year, with a 25% government bonus on the final account balance for an eligible purchase, capped at £20,000. The property price cap will remain £450,000.

This is a deposit-saving product rather than a loan. Buyers will still need mortgage approval and the usual legal checks on the property and source of funds. The published design also requires the account to have been held for a minimum of a year and the purchase to involve a mortgage.

It could help future buyers build their deposit, but it will not provide immediate support for someone buying now. Buyers should discuss their savings arrangements early with their conveyancer and mortgage adviser so that eligibility and the release of funds can be checked against their purchase timetable.

What should clients be doing now?

Across the board, it is important to start with the measures that could affect decisions already under consideration: recruitment, a business sale, a property purchase or a development project. Check the commencement dates and eligibility rules before changing plans.

At SE-Solicitors, our Corporate & Commercial, Commercial Property, Employment and Residential Property teams can help you consider the legal implications, working alongside your tax and financial advisers where appropriate.

To discuss how the Budget could affect you or your business, contact hello@se-solicitors.co.uk or call 01295 204000. 

This article reflects announcements and published information available on 29 October 2026. Measures remain subject to the relevant legislation and, where applicable, consultation. It provides general information rather than advice on individual circumstances.