Around 70,000 more retail, hospitality and leisure businesses will pay no business rates at all, according to figures reported after the Chancellor’s speech. Chancellor John Healey delivered the Autumn Budget 2026 on 28 October, his first as Chancellor, and that change is one of several that matter to Kent businesses.

Some measures are settled. Others still need detail from the Treasury and HMRC, so each section below says which is which.

Business rates relief for high street businesses

The Autumn Budget 2026 raises the threshold for small business rate relief for retail, hospitality and leisure businesses in England from £12,000 to £18,000 of rateable value. Other businesses in these sectors will have their rates frozen in real terms for two years, so bills should not rise faster than inflation.

If you run a shop, café or gym in Dartford, Gravesend or Sevenoaks, check your rateable value on GOV.UK and ask your local council whether you qualify. The start date has not yet been confirmed.

Capital allowances and equipment purchases

Full expensing stays for eligible assets. For other assets, the first-year allowance on the main rate rises from 40% to 50%, while the main writing down allowance falls from 14% to 12%. You get more relief in the year you buy and less in later years. The start dates were not given in the speech, so check them before timing a purchase around your year end.

Selling your business: BADR and the new founders’ relief

The lifetime limit for Business Asset Disposal Relief (BADR) falls from £1 million to £500,000. BADR is charged at 18%, against 24% on most other gains for higher-rate taxpayers. That means the most a higher-rate taxpayer can save falls from £60,000 to £30,000. The Chancellor said three in four claimants will see no change.

A new founders’ relief will tax lifetime gains of up to £10 million at 10% for founders of what he called the most successful firms. The eligibility rules have not been published, so do not assume you will qualify.

Property, savings and dividend income

Tax on property and savings income rises by a further two percentage points from April 2027, on top of the increase already due on that date. Press reports suggest the basic, higher and additional rates would reach 24%, 44% and 49% if the two rises are added together, but the Treasury has not yet confirmed the figures.

Dividend tax is unchanged at 10.75% for basic rate and 35.75% for higher rate taxpayers, and no change to tax on employment income was announced. The freeze on income tax thresholds announced last year continues until April 2031. Our 2026/27 tax rates and allowances guide has the current figures.

Changes for directors and the self-employed

• Cash ISAs: The planned £12,000 cap on cash ISA contributions for under-65s will not go ahead. The £20,000 limit stays for everyone, which replaces what we covered in our Autumn Budget 2025 blog. A new starter ISA for first-time investors is planned.

• Self Assessment payments: From 2029, the way Self Assessment tax is paid will be reformed, with smaller, more regular payments instead of large bills. No detail has been given yet.

• Overdue tax: HMRC will get funding and stronger powers to collect overdue tax from people who can afford to pay but ignore repeated contact.

• Taking profits out of a company: The Chancellor said the rules will change so that profits taken from companies are taxed consistently, while genuine commercial transactions and family succession are protected. No detail was given. If you are planning a share buyback or a company closure, speak to us before you act.

• Trading allowance: It rises from £1,000 to £3,000. Early reports point to April 2027, which is yet to be confirmed.

• Parental leave: Self-employed fathers and partners become eligible for paid parental leave for the first time.

What the Autumn Budget 2026 means for employers

The National Living Wage rises by 3.9% from April 2027, to around £13.20 an hour for workers aged 21 and over. The rate for 18 to 20 year olds rises by the same percentage, to £11.27. Reports differ by a penny on the exact living wage figure, so confirm it on GOV.UK before you update your payroll. We can help with the payroll and PAYE side of this.

For employees using their own cars, the rate for business miles over 10,000 rises from 25p to 35p per mile, and the 55p rate for the first 10,000 miles becomes permanent. The 5p fuel duty cut and the lower red diesel rate continue until July. The new electricity discount is aimed at 10,000 industrial firms, so most small businesses will not qualify.

How the Autumn Budget 2026 is being paid for

The Chancellor said every measure is fully funded. Part of the money comes from a temporary 3% bank surcharge and higher duty on gambling machines.

What should you do now?

Every business is different, and several of these measures are still waiting for detail. These steps are a sensible starting point after the Autumn Budget 2026:

• Check your business rates position. If you are in retail, hospitality or leisure, find your rateable value and ask your council about relief.

• Time equipment purchases carefully. Wait for the start dates of the new allowance rates before committing to a large purchase.

• Plan any sale early. If you may sell your business in the next few years, model the lower BADR limit and the new founders’ relief.

• Review how you pay yourself. Our guide on how to pay yourself as a business owner covers salary and dividends, and our overdrawn director’s loan guide covers loans from your company.

• Update your payroll plans. Build the April 2027 wage rise into your staffing costs now.

Concerned about how these changes affect your business?

Budget announcements can sound simple in the speech, but the detail decides who benefits. At Adams Accountancy, we help Kent businesses work out what the Autumn Budget 2026 means for them, with clear, practical advice from our friendly team.

Contact us for a free, no-obligation chat about your situation. Call us on 01322 250001 or get in touch online. No question is too silly when it comes to understanding your taxes.

Frequently asked questions about the Autumn Budget 2026

Will my business rates fall after the Autumn Budget 2026?

They could, if you run a retail, hospitality or leisure business in England with a rateable value of up to £18,000. The small business rate relief threshold rises from £12,000, and other businesses in these sectors get a two-year real-terms freeze. The start date has not been confirmed, so ask your local council. You can read about applying for business rate relief on GOV.UK.

Has dividend tax changed in the Autumn Budget 2026?

No. Dividend tax stays at 10.75% for basic rate and 35.75% for higher rate taxpayers above the £500 allowance, and the additional rate stays at 39.35%. Tax on property and savings income does rise from April 2027. See GOV.UK on tax on dividends for the current rules.

What happens to Business Asset Disposal Relief?

The lifetime limit falls from £1 million to £500,000, and the rate stays at 18%. A higher-rate taxpayer’s maximum saving falls from £60,000 to £30,000. A separate founders’ relief of 10% on gains up to £10 million has been announced, but the eligibility rules are not yet published. Read the GOV.UK guidance on Business Asset Disposal Relief before you plan a sale.

What will the National Living Wage be from April 2027?

The Chancellor announced a 3.9% rise, which takes the rate for workers aged 21 and over to around £13.20 an hour. Reports differ by a penny, so check the final figure on the GOV.UK minimum wage rates page before you update payroll. The rate for 18 to 20 year olds rises to £11.27.

About the author

Michelle Adams is a qualified accountant and director at Adams Accountancy, a friendly accountancy practice based in Dartford, Kent. With over 15 years of experience supporting sole traders, landlords and limited company directors across Kent, Michelle specialises in making tax changes clear and manageable. Get in touch for a free consultation.