Autumn Budget 2026: why now is the time to review your tax planning

With the Autumn Budget approaching, businesses and individuals may be tempted to wait and see what the Chancellor announces before making any major financial decisions.

But good tax planning is about more than reacting to the Budget. For anyone already considering a business sale, investment, pension contribution, restructuring or estate-planning exercise, now could be a good time to review existing plans and consider whether any decisions should be brought forward.

Planning for a business sale or investment

Business owners considering selling their company or disposing of shares may want to review the timing of their plans before the Budget.

Where a transaction is already well advanced, it may be worth considering whether there is scope to accelerate matters, subject to the commercial and legal circumstances. This is particularly important where the tax treatment of the disposal forms a significant part of the overall financial planning.

There has also been continued speculation about Capital Gains Tax (CGT). Analysis suggests that simply increasing CGT rates is unlikely to raise additional revenue, so further increases may be less likely. However, any announcement of a future increase could encourage investors to bring disposals forward.

Businesses considering investment in equipment, machinery or vehicles should also review their plans. If expenditure is already commercially justified, bringing it forward could be worth considering under the current rules.

Pension and estate planning

Pensions are increasingly important to consider as part of wider estate planning. From April 2027, most unused pension funds and pension death benefits will come within the scope of Inheritance Tax. For those with significant pension wealth, this could have a substantial impact on how their estate is structured.

Whilst we hope there are no further significant Inheritance Tax-raising changes in this Budget, the introduction of Inheritance Tax on pensions from April 2027 could have a significant effect on many estates. It is important to review how these changes affect your own estate planning.

Individuals should also consider whether they are making effective use of their pension allowances, while businesses may wish to review whether employer pension contributions form part of an appropriate remuneration and retirement strategy.

HMRC's focus on getting things right

Another important consideration is HMRC's continued focus on closing the tax gap. The Government estimates that around 60% of the tax gap relates to small businesses and their owners, so continued focus on data gathering, reporting and compliance is expected.

It’s more important than ever for businesses and their owners to make sure their records are accurate and that the right information is being reported at the right time.

HMRC is also consulting on proposals to make Income Tax Self Assessment payments more timely, bringing the system closer to the way tax is collected through PAYE. For self-employed individuals and business owners, this could have implications for cash flow and tax planning.

Keep an eye on the bigger picture

Businesses considering a restructuring, demerger, share reorganisation or purchase of their own shares should also take advice, particularly while the Government's wider review of the taxation of company distributions and repayments of capital is ongoing.

For individuals and families, the future funding of social care is another area to watch. An independent commission is due to report in 2027, although no immediate changes are expected.

Ultimately, the Budget may bring changes, but there are already plenty of reasons to review your tax position.

For business owners in particular, personal and corporate tax planning are closely connected. Decisions around selling a business, extracting profits, making pension contributions or passing wealth to the next generation can have consequences for both.

Taking advice now can help you understand the current position, prepare for changes already on the horizon and make informed decisions when the Budget arrives.

For more information or advice on business or personal tax planning, contact the tax team at Monahans.