If you own a limited company, the Budget deserves a look beyond the day-to-day tax bill. Some of the most significant announcements concern the money you invest in the business and what happens when you eventually sell, retire or pass it on.
There is a new relief aimed at certain founders, a smaller lifetime limit for Business Asset Disposal Relief and proposed changes to the taxation of company profit withdrawals. The practical starting point is to review your plans early.

Planning a sale or retirement
From 6 April 2027, the lifetime limit for gains eligible for Business Asset Disposal Relief is due to fall from £1 million to £500,000. The limit relates to qualifying gains, rather than sale proceeds, and eligibility conditions still apply.

This could affect the tax cost of a future business sale. Any relief used previously will also need to be considered when assessing your position under the detailed rules. If you are approaching a sale, retirement or succession, ask us to review the potential tax exposure alongside your solicitor before agreeing the structure or timing.

New Founders Relief has a specific audience
The proposed Founders’ Relief would offer a 10% Capital Gains Tax rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies from 6 April 2027.

Detailed eligibility is subject to technical consultation. Being a founder or director will not automatically qualify you, so it would be premature to assume this relief will replace BADR for your business.

Future changes to withdrawing accumulated profits
The government plans to modernise the rules for company distributions and repayments of capital from April 2028. The reforms are intended to address arrangements that turn accumulated company profits into capital gains where income treatment would otherwise apply, while protecting genuine commercial ownership changes.

Draft legislation is expected in 2027. If you are considering a liquidation, share buyback, restructuring or family succession, the proposals are a reason to seek advice before committing. The final effect will depend on the transaction and the legislation.
Separately, the proposed additional close company reporting requirements for payments to participators will not be introduced at this time. Existing reporting and tax obligations continue.

Review the relief on planned investment
The main rate first-year allowance is set to rise from 40% to 50% for qualifying expenditure from 1 January 2027. The main writing down allowance will fall from 14% to 12% from 1 April 2027 for Corporation Tax.

These changes will not affect every purchase in the same way. Asset type, eligibility for other allowances and your accounting period can all matter. If you are planning significant equipment spending, we can help compare the relief available and the timing of the cash benefit.

Keep company and personal planning connected
From April 2029, businesses will need Direct Debit instructions for VAT and PAYE liabilities. Alternative payment methods will remain available before a specified cut-off date, with unpaid balances collected by Direct Debit. Directors who already make personal Self Assessment payments on account should also prepare for more regular payments from April 2029.

Personal savings income rates are set to become 24%, 44% and 49% from April 2027. These are personal Income Tax rates, not the Corporation Tax rates on interest earned by your company.

If your company operates in retail, hospitality or leisure in England, check its eligibility for the announced business rates support. If you reimburse staff for business use of their own cars or vans, review the mileage changes too.

Make the Budget relevant to your business
At Coalesco, we can help you review investment plans, personal tax and the financial implications of a future exit together. Contact us through coalesco.co.uk for a friendly conversation about your next step.

This article reflects announcements made on 28 October 2026. Some measures require legislation or further detail. Tax treatment depends on your circumstances.