Budget watch: What the Autumn BUDGET could mean for 2026 tax planning
The Autumn Budget is on the horizon. There’s no date yet, but big shocks look unlikely. Now’s the time to stress-test 2026 plans around VAT, capex and R&D, and tidy your evidence. Below are the likely moves and quick actions — and we’ll unpack them all at FAB in March.
Signals to build into your 2026 plan
Corporate tax and investment: Labour has committed to keep the main corporation tax rate at 25%, and to retain permanent full expensing and the Annual Investment Allowance. Autumn 2024 reinforced that stability signal for capex. Model project timing on a steady 25% rate, and assume full expensing remains available while watching leasing rules.
VAT, thresholds and scope: The VAT registration threshold increased to £90,000 from 1 April 2024 and remains at that level. Firms close to the line should refresh rolling twelve-month tests, onboarding and pricing assumptions, and prepare targeted client communications for threshold breaches.
Capital taxes as a pressure valve: The government has already shown a willingness to adjust capital taxes mid-year (AccountingWEB, 2025). CGT main rates on most assets rose from 10% and 20% to 18% and 24% with effect from Budget Day in October 2024, bringing real planning impacts for disposals and remuneration mixes.
R&D, merged regime bedding in: For periods beginning on or after 1 April 2024 the merged scheme applies, with ERIS retained for intensive SMEs. Large groups should revisit contracted-out arrangements and evidence standards, SMEs should tighten notifications and qualifying costs under the new rules.
Compliance and digital execution: Expect continued emphasis on documentation quality and digital reporting. Recent coverage highlights HMRC’s investment in digital services, along with ongoing MTD scope and penalty changes that firms should factor into controls and resourcing.
Continue the conversation at FAB
We are busy curating the 2026 sessions that will move teams from speculation to execution - including sessions from the policymakers themselves. Join peers and vendors at FAB, 11-12 March 2026, NEC Birmingham to compare approaches, book one-to-ones, and leave with your 2026 plan in place.
