UK Autumn Budget 2026: What It Means for Tech, Ecommerce & Growing Businesses
What the Chancellor's first Budget means for founders, online sellers and scaling teams, and what to do before April 2027.
The Chancellor's first Autumn Budget was never going to be a showstopper. Delivered on 28 October 2026, it was a package of small fixes, targeted reliefs and modest tax rises, with the stated aim of giving households and businesses some “breathing space”. For founders, ecommerce sellers and growing companies, though, the detail matters more than the headlines. Several changes take effect in April 2027, which leaves a short window to plan.
The big picture
The government says it still meets its fiscal rules. Markets barely reacted, which suggests the package landed broadly in line with expectations. Energy costs remain a pressure point, with major suppliers predicting that prices could rise by up to 25% in January, ahead of an Ofgem announcement in November.
Founders and business owners: Capital Gains Tax changes
Two changes will matter to anyone planning an exit, a sale or a funding round.
Plan ahead: if a sale or restructure is on the horizon, it is worth modelling the outcome under both the current and the new rules well before April.
Ecommerce sellers: marketplaces to collect VAT
Online marketplaces will become responsible for collecting VAT at source from retailers selling on their platforms with a turnover of £90,000 or more, wherever those sellers are based.
For multi-channel and cross-border sellers, this could change cash flow, reconciliation and the way VAT is reported across entities. Now is a good moment to review how your marketplace sales are accounted for.
Smaller businesses: business rates and payroll costs
The threshold at which smaller businesses pay business rates rises from £12,000 to £18,000 from April, which the Chancellor says will take 70,000 smaller businesses out of business rates altogether. On the cost side, from April 2027:
Personal finances for owners and directors
Savings and property income will be taxed more heavily. From April 2027, tax rates on savings and property income rise by a further two percentage points across all bands, taking the 2027-28 rates to:
The cash ISA allowance stays at £20,000, reversing earlier plans to cut it to £12,000 for under-65s, and a new Starter ISA to encourage first-time investors will be the subject of consultation. A first-time buyer ISA is planned for April 2029, replacing the Lifetime ISA.
On pensions, the triple lock will end from 2030 and be replaced by a double lock. From April 2027, a new pension tax allowance will help stop people on modest pension incomes paying small amounts of tax, and the two-year rule on pension death benefits has been removed for payments made from Budget Day.
Other measures worth knowing
Households in council tax bands A to D will receive a £100 energy payment, and the daily standing charge is to be removed from gas bills. Banks will face a temporary 3% surcharge from January 2027, ending 15 months later, rather than the 8% many had expected. For tech businesses, the government also announced £500 million for AI security alongside a new data centre covenant.
What to do before April 2027
Model exit and Capital Gains Tax scenarios under the new BADR limit and the proposed 10% founder rate.
Review how marketplace sales and VAT are reported across your entities.
Update payroll forecasts for the National Living Wage increase.
Revisit how you draw income, given higher tax rates on savings and property income.
Check your group structure and reporting calendar so the April changes don't catch you out.
How OTG can help
OTG Accountants helps tech, ecommerce and growing businesses manage international tax, multi-entity reporting, month-end close and strategic finance, without the cost of building an in-house finance team. If you would like to understand what the Budget means for your group, book a free consultation with our team.
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