Budget Predictions for October 2026: What’s Coming for Business and Property?
The UK Budget has now been confirmed for 28th October 2026, and speculation is already building around what changes business owners and property investors should expect. While a full, detailed analysis will follow once the Budget is actually delivered, here’s a rundown of what’s currently being discussed split into business and property, and broken down into the good news and the bad.
Business: The Good News (NI, Business Rates, Personal Allowance)
There are a few potentially positive changes being discussed for business owners:
- Employer’s National Insurance currently at 15%, having previously hurt businesses employing staff. There are rumours this could be reduced back down to 13.8%, which would be a significant positive if it happens.
- Business rates relief has already been applied to the hospitality sector, and there’s discussion of extending changes to the small business rates threshold more broadly. This would particularly help small businesses operating from offices, who are currently being squeezed by rising rates.
- Personal allowance threshold currently frozen at £12,500. While this is an income tax matter rather than a pure business tax, it’s highly relevant to entrepreneurs, since this is typically the threshold used when setting a director’s salary. An uplift here would benefit both business owners and the general public, though it would come at a significant cost to the government, making it uncertain whether it will actually happen.
Business: The Bad News (Entrepreneurs’ Relief, Savings Tax, Pension IHT)
Unfortunately, there’s considerably more bad news on the business side.
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief)
This relief matters most to entrepreneurs on what’s referred to as “liquidity day” the point at which they sell their company shares, whether through a sale, an employee buyout, or closing the business down. This relief has already become significantly less generous, and further restrictions are rumoured to be on the way:
| Previously | Now | |
|---|---|---|
| Tax rate | 10% | 18% |
| Lifetime allowance | £10 million | £1 million |
Despite this significant reduction already having taken place, there are concerns the government still considers the current £1 million lifetime allowance too generous, with further restrictions potentially on the way. This relief is considered one of the biggest incentives for entrepreneurial growth, so attacking it further is viewed as a serious risk to entrepreneurship in the UK.
Savings Tax Rate Increase
An additional 2% increase on top of existing income tax rates is expected to apply to savings income. This means the basic rate of 20% would effectively become 22%, with the increase applying consistently across all tax bands. Combined with inflation already eroding the value of cash savings, this represents an additional squeeze on anyone trying to build up savings.
Inheritance Tax on Pensions
This is described as one of the biggest changes of all. Pensions can now potentially face Inheritance Tax at a rate of 40%, and in some combined scenarios, this can effectively rise as high as 67% once other taxes are layered on top. There are still ways to manage this exposure including through tools such as SSAS pensions but this represents a significant change to how pensions are treated on death, and specialist advice is strongly recommended for anyone affected.
Property: Tax Hikes and the “Mansion Tax” Inspections
Turning to property as both a property investor and a business owner, this is a sector closely watched here. Unfortunately, when it comes to genuinely positive news for property owners and investors, there really isn’t much to report. The closest thing to good news is that business rates changes (covered above) could indirectly benefit commercial property, but beyond that, there’s little on the table for property entrepreneurs.
Property Income Tax Increase
Just as with savings, an additional +2% is expected to apply across all income tax bands for property held in your own name:
| Tax Band | Current Rate | Proposed Rate |
|---|---|---|
| Basic rate | 20% | 22% |
| Higher rate | 40% | 42% |
| Additional rate | 45% | 47% |
The New “Mansion Tax”
Perhaps the most controversial proposal is a new high-value property tax effectively another form of council tax targeting properties valued at £2 million or more. While this might not sound alarming to those without a £2 million property, the way it’s proposed to be implemented has raised significant concern.
According to current reporting, in order to establish whether a property meets the £2 million threshold, inspectors would come and physically inspect properties. If a homeowner does not allow the inspector into their property, they could face a £200 fine.
This raises serious civil liberties concerns homeowners could face unannounced visits from inspectors wanting to look around and value their private home, with a financial penalty attached if they decline entry. This is a significant departure from how property valuations have typically worked in the UK, and represents a genuinely alarming precedent if implemented as currently described.
Final Thoughts Ahead of the October Budget
With the Budget confirmed for 28th October 2026, business owners and property investors are facing a genuinely mixed and in the case of property, largely negative set of proposals. Potential relief on employer’s National Insurance, business rates, and the personal allowance threshold offers some hope on the business side, but this is significantly offset by further restrictions to Business Asset Disposal Relief, an increased savings tax rate, and major changes to Inheritance Tax on pensions. Property owners face a further tax increase on rental income, alongside the deeply controversial proposed “mansion tax” and its associated inspection regime. A full, detailed review will follow once the Budget is actually delivered.
Get Ahead of the October Budget with GoldHouse Accounting
With so many proposed changes affecting business owners, savers, pension holders, and property investors, planning ahead of Budget day matters more than ever. At GoldHouse Accounting, our tax advisors and wealth management consultants help clients understand exactly how proposed changes to Business Asset Disposal Relief, pension Inheritance Tax, and property income tax could affect them and what can be done now to prepare. Get in touch ahead of the 28th October Budget to make sure you’re not caught off guard.
This article reflects the presenter’s personal views and analysis based on rumours and proposals reported ahead of the 28th October 2026 Budget. None of the changes discussed have been confirmed as government policy, and details may change or may not be implemented at all. This is not personalised tax advice speak to a qualified tax advisor about how any confirmed Budget changes could affect your specific circumstances.
