Autumn Budget 2026 – CGT reliefs and entrepreneurs

by Aitch, posted in Capital Gains Tax

The Chancellor, John Healey announced changes to Capital Gains Tax (CGT) reliefs for business owners and investors as part of the Budget measures. From 6 April 2027, the lifetime limit for Business Asset Disposal Relief (BADR) will be reduced from £1 million to £500,000. The change will apply to qualifying disposals made on or after that date, subject to special provisions for certain contracts entered into before 6 April 2027 and for some share reorganisations and exchanges of securities.

BADR allows eligible individuals to pay a reduced rate of CGT on qualifying gains when they sell all or part of a business, or qualifying shares in a personal company. The lifetime limit applies to the total qualifying gains on which an individual can claim the relief, rather than the value of the business being sold. Reducing the limit means that less of an individual’s lifetime gains may qualify for the reduced rate.

The government has also announced a new Founders’ Relief, intended to support founders and early investors who have made a significant, long-term contribution to the development of high-growth and innovative UK companies. It is intended to provide a 10% CGT rate on qualifying disposals of shares or securities from 6 April 2027, subject to the final rules. A consultation on the new Founders’ Relief has been launched and will close on 30 November 2026. 

The Budget also announced a pilot Young Entrepreneurs Allowance in England, aimed at helping young people overcome the financial barriers to starting a business. Successful applicants will receive support towards their living costs during the first year of their business. The scheme is intended to help aspiring entrepreneurs who may have good business ideas but lack the personal financial support needed to get started. Further details of the pilot, including eligibility criteria and how to apply, are expected to be announced in due course.
 

Source:HM Treasury | 28-10-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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