Autumn Budget 2025: What it means for large & mid-market businesses

Autumn Budget 2025 – What it means for large & mid-market businesses

Delivered 26 November 2025

The Chancellor’s Autumn Budget centred on fiscal stability, cost control and long-term revenue generation. Below is a focused summary of the measures that matter most for larger businesses, multi-entity groups, and organisations with national or cross-regional operations.

 

Corporate Tax, Capital Investment & Growth

Corporation tax remains unchanged

The main rate stays at 25%. The UK continues to hold the lowest corporation tax headline rate in the G7.

40% First-Year Allowance (FYA) – effective January 2026

A new 40% FYA applies to most main-rate plant and machinery, including assets used for leasing and unincorporated businesses.

This will be relevant to:

• manufacturers
• logistics and distribution
• infrastructure-heavy businesses
• digital/tech companies with high server or equipment investment
• asset finance and leasing groups

Important note for capital planning:
From April 2026, writing-down allowances drop from 18% to 14%. This slows long-term tax relief on assets not eligible for full expensing. The timing of major capital programmes may materially affect tax efficiency.

Zero-emission cars and EV chargepoints – 100% FYA extended

Available until 2027 for Corporation Tax purposes. Useful for fleet replacement cycles and sustainability strategies.

UK Listing Relief

A three-year exemption from Stamp Duty Reserve Tax for companies listing in the UK from 27 November 2025. Relevance: businesses planning IPO, de-listing/re-listing, or group restructuring.

 

Workforce, Payroll & Employment

National Living Wage and Minimum Wage increases from April 2026

• NLW rises to £12.71/hour
• 18–20 rate: £10.85/hour
• 16–17/apprentice rate: £8.00/hour

These changes will significantly impact employers with large workforces, particularly in:

• retail
• hospitality
• logistics
• healthcare
• manufacturing
• facilities and service sectors

We recommend early wage modelling for 2026/27 budgets.

 

Salary sacrifice pension cap (April 2029)

Only the first £2,000 of annual contributions via salary sacrifice remain exempt from NICs. Above this, employer/employee National Insurance Contributions (NICs) apply.

This affects:

• senior leadership remuneration
• high-earner retention strategies
• large-scale salary sacrifice schemes
• total reward cost modelling

We will need to revisit remuneration frameworks well ahead of 2029.

Apprenticeships

Training for apprentices under 25 becomes fully funded for SMEs while not directly affecting larger employers, it supports the broader training ecosystem and supply chains.

 

Income, dividends & investment income

For business owners, directors, shareholders and group executives:

Dividend, savings and property income rates rising

From 2026/27, most categories increase by 2% (except additional rate on dividends, which stays the same).

Dividends remain an important area for personal tax planning for owner-directors in large family or privately held groups.

Income Tax & NIC thresholds frozen until 2031

The extended freeze increases real tax pressure over time for senior staff and executives.
This will have knock-on effects on salary expectations and benefit packages.

 

Sector-Specific Measures

Manufacturing

Electricity costs will be reduced for manufacturers (details pending). Combined with First-Year Allowance’s, this strengthens the case for capital expenditure (capex) in machinery, automation and infrastructure.

Construction & Constriction Industry Scheme (CIS) -dependent sectors

HMRC will tighten rules around CIS fraud and enforcement. Large contractors and groups using extensive subcontractor networks must ensure compliance is robust.

Gambling & gaming

Remote gaming duty increases sharply from 2026, with online betting duty rising in 2027.

Drinks Industry

The Soft Drinks Industry Levy extends to sugary milk-based drinks from 2028.

 

Property, Estates & Group Assets

High value council tax surcharge (“Mansion Tax”)

For companies holding high-value residential property:

• £2m+ homes: £2,500 annual surcharge
• £5m+ homes: £7,500 annual surcharge
  applies from 2028/29.

IHT, APR & BPR (for family groups and private businesses)

The combined £1m agricultural/business property allowance remains frozen until 2031, with transferability between spouses/civil partners from 2026.

This is important for succession planning in large family-run groups, landed estates, and multi-asset businesses.

 

Governance, compliance & HMRC powers

HMRC gains enhanced powers to:

• pursue promoters of tax avoidance schemes
• tighten minimum wage compliance
• increase construction industry enforcement
• crack down on fraudulent schemes and inaccurate reporting

For larger organisations, this increases the importance of:

• clean payroll processes
• CIS compliance
• robust internal controls
• documented governance
• transparent tax risk management

 

What this means for larger businesses

The Budget is fiscally cautious but structurally significant.
Key implications include:

• rising wage costs from 2026
• slower long-term capital allowances
• greater scrutiny from HMRC
• changing pension tax planning for senior staff
• new opportunities for investment via FYAs and listing relief
• increased personal tax burdens on leaders and shareholders

Success will come from forward planning around:

• workforce cost modelling
• remuneration and benefits strategy
• capital expenditure timing
• corporate structuring and investment plans
• succession, governance, and shareholder planning
• compliance risk assessments

 

How we can support you

We work closely with finance directors, boards and leadership teams to provide:

• tax strategy & planning
• group structuring advice
• capital expenditure modelling
• remuneration planning for executives
• payroll and workforce cost forecasting
• audit & assurance
• corporate tax advisory
• succession & exit planning
• compliance and governance support
• Audit & Assurance

If you’d like a deeper review of how these Budget measures impact your business, we’re here to help. Call 01932830664, email enquiries@wardwilliams.co.uk or visit www.wardwilliams.co.uk