There weren’t a huge number of announcements in this year’s Budget, but there are a few changes worth knowing about. We’ve picked out the main points affecting you and your business, along with our thoughts on what they mean in practice.
Minimum wages are increasing again
The National Living Wage and National Minimum Wage rates will increase by around 3.9% from 1 April 2027:
| Category | Current hourly rate | From April 2027 |
| Age 21 and over | £12.71 | £13.21 |
| Age 18–20 | £10.85 | £11.27 |
| Under 18 | £8.00 | £8.31 |
| Eligible apprentices | £8.00 | £8.31 |
The apprentice rate applies to apprentices under 19, or those aged 19 and over in their first year.
Business Rates
From 1 April 2027, relief for pubs, social clubs and qualifying live music venues in England will increase from 15% to 35%.
For qualifying retail, hospitality and leisure properties, the threshold for full Small Business Rates Relief will increase from a rateable value of £12,000 to £18,000, with tapered relief extending to £21,000.
Other qualifying properties in these sectors will benefit from a real-terms freeze in rates bills for 2027/28 and 2028/29.
Higher taxes for savers and landlords
Last year’s Budget announced a 2% increase in tax on savings and property income from April 2027. This Budget adds another 2% from the same date.
From 6 April 2027, the rates will therefore be:
| Tax band | Current rate | New rate |
| Basic | 20% | 24% |
| Higher | 40% | 44% |
| Additional | 45% | 49% |
For landlords already dealing with higher borrowing and maintenance costs, this is another squeeze on returns.
Selling your business could become more expensive
The lifetime limit for gains qualifying for Business Asset Disposal Relief (BADR) will fall from £1 million to £500,000 for disposals from 6 April 2027.
BADR currently provides an 18% Capital Gains Tax rate on qualifying gains. The reduced lifetime limit could mean more of a future sale is taxed at the standard rate.
If you are considering selling, retiring or passing on your business, please speak to us early.
Founders’ Relief: an attractive headline, but targeted eligibility
The government also plans to introduce Founders’ Relief from 6 April 2027, offering a 10% Capital Gains Tax rate on up to £10 million of lifetime qualifying gains.
That sounds generous, but the consultation proposals target founders of larger, growing and innovative businesses.
Proposed conditions include:
- At least £10 million turnover in the accounting period before disposal.
- At least 15 full-time employees.
- Founder ownership of at least 25%, with a minimum five-year ownership period and residence conditions.
- Meeting at least two of three growth and innovation tests covering turnover growth, employee growth and qualifying research and development expenditure.
The consultation runs until 30 November 2026, so the detailed rules may change.
For many smaller owner-managed businesses, this is unlikely to compensate for the reduction in BADR.
Higher mileage rates made permanent
The temporary 55p per mile rate announced in May, applying retrospectively from 6 April 2026, has now been made permanent for the first 10,000 qualifying business miles in a personally owned car or van.
From 6 April 2027, the rate above 10,000 business miles will also increase from 25p to 35p.
The cash ISA cut has been scrapped
The planned reduction in the cash ISA subscription limit will no longer happen. The annual limit remains £20,000, which can continue to be paid entirely into a cash ISA.
Trading Allowance to triple
The Trading Allowance will increase from £1,000 to £3,000 from 6 April 2027.
This will be particularly useful for people with small amounts of trading or miscellaneous income, including some side businesses.
R&D
From 1 April 2027, R&D claim notifications will no longer be required for claims being made on or after that date. However, advanced notification will still be in force up until this date. Further, HMRC intend to change the information required by the additional information form from autumn 2027, and are open to practical ideas about how to improve the taxpayer experience.
Please get in touch if you would like to discuss how the announcements affect you.
