In brief
On 28 October 2026, the UK Chancellor, John Healey, delivered the Autumn Budget 2026. For businesses, the key announcements include a temporary doubling of the bank surcharge, changes to capital allowances, modernising the distributions framework and a new programme to simplify the Corporate Tax system. The government also confirmed other previously announced measures, including the implementation of the Pillar Two Side-by-Side package, reforming the foreign permanent establishment (PE) exemption, the modernisation of stamp taxes, a new obligation to correct errors in tax returns, an expansion of Value Added Tax (VAT) deeming rules for online marketplaces and a new zero-rate for donated medicines.
Other developments include a new mechanism to provide double taxation relief for income received by investors in US limited liability companies (LLCs) and other reverse hybrids, a consultation on the taxation of sovereign investment, a reduction in the Business Asset Disposal Relief (BADR) lifetime limit alongside a new Founders’ Relief and a number of significant VAT changes, including a roadmap for mandatory e-invoicing. We highlight the main business tax and VAT announcements below.
Kathryn Sewell, UK Tax Director, has contributed to this legal update.
Download the full alert of United Kingdom: Autumn Budget 2026 – Key Business Tax & VAT Highlights.