Autumn Statement 2025 | Expert Insights
Response on Business Tax
This Budget marks another significant shift in the corporation tax landscape, particularly for owner- managed and entrepreneurial businesses. Capital allowances and investment The reduction in the main rate of Writing Down Allowances from 18% to 14% from April 2026 reduces tax savings. However, retaining full expensing and a new 40% first-year allowance offers some mitigation. Slower tax relief on investment means more profit brought into charge earlier, increasing the tax cost of growth-oriented capital expenditure. Dividend taxation The rise in dividend tax rates by 2% on the basic and higher bands from April 2026 narrows the long-standing tax advantage of taking income as dividends rather than salary. Combined with frozen tax thresholds and wider income-tax changes, the Government is clearly moving towards equalising the taxation of labour and investment income, and this will impact how owner- managed companies structure profit extraction going forward.
Nick Wright
Director Jerroms Miller Specialist Tax
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