| Eligible retail, hospitality and leisure properties in England will benefit from a higher Small Business Rate Relief threshold | Funding will support AI, innovation and business investment, including a £700m AI package and additional finance commitments | Proposed Founders’ Relief could offer qualifying entrepreneurs a 10% Capital Gains Tax rate on up to £10m gains |
The Chancellor outlined measures to support business investment and entrepreneurship, including:
- Business rates – the Small Business Rate Relief threshold for eligible retail, hospitality and leisure properties in England will rise from £12,000 to £18,000. A two-year real-terms freeze will apply to other eligible properties in these sectors
- Business taxation – the Business Asset Disposal Relief lifetime limit will fall from £1m to £500,000. From April 2027, proposed Founders’ Relief will offer a 10% Capital Gains Tax rate up to £10m of qualifying lifetime gains, subject to eligibility
- Entrepreneurs – a Young Entrepreneurs Allowance pilot is proposed for England and British Business Bank commitments to women-led businesses and funds will double to £200m
- Investment and AI – an additional £20.4bn is pledged through the National Wealth Fund and British Business Bank. A £700m AI package includes £120m for the AI Security Institute and £165m for a National AI Biosecurity Initiative, with further support for UK-developed AI
- Industrial energy – from April 2027, the British Industrial Competitiveness Scheme is intended to cut electricity bills by up to 25% for more than 10,000 eligible businesses in energy-intensive industries.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding of the Budget taxation and HMRC rules and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
All details are believed to be correct at the time of writing (28 October 2026)
