The Autumn Budget 2025 brought several important updates that could impact businesses across various sectors. In this blog, we’ll break down the key takeaways that affect R&D, Energy, Property, and AML. Here’s what businesses need to know:
The Budget confirms simpler administration of R&D claims, new electricity support for energy-intensive manufacturers, more up-front relief on investment in plant and machinery, and a new relief for founders. SDLT group relief is tightened, and most measures take effect between January and April 2027.
For our clients, the most significant changes are the simpler R&D claims process, the BICS electricity discount and the capital allowances changes. Most measures take effect between January and April 2027, so there is time to plan, but eligibility and timing are worth checking now.
At a Glance
• R&D Tax Relief & HMRC Compliance: Claim Notification Form removed; Additional Information Form simplified. No change to rates.
• Industrial Energy Costs: BICS gives a 20–25% electricity discount for eligible manufacturers from April 2027.
• Capital Allowances: first-year allowance rises from 40% to 50%; writing-down allowance falls from 14% to 12%.
• Innovation, Investment & Growth: new 10% Founders’ Relief; EMI2 limit doubled; BADR limit halved.
• Property Taxation & SDLT: SDLT group relief tightened; property income tax rates rise.
• Land Remediation Relief: relief unchanged; Biodiversity Net Gain exemption for small brownfield sites.
1. R&D Tax Relief & HMRC Compliance
What Has Changed
• The Claim Notification Form (CNF) is removed for claims made on or after 1 April 2027.
• Companies with accounting periods ending on or after 30 April 2025 that missed the CNF deadline can still claim, provided the claim is made on or after 1 April 2027 and within the usual two-year time limit.
• The Additional Information Form (AIF) will be simplified from autumn 2027.
What Stays the Same
• No change to the rates of relief.
• Evidence standards are unchanged.
• For accounting periods ending on or before 31 March 2025, a CNF is still required and missed deadlines cannot be recovered.
What It Means for Businesses
• More flexibility for businesses that identify R&D activity or decide to claim later than planned.
“While this is a welcome step, it’s disappointing that the removal of the Claim Notification Form won’t take effect sooner, particularly for businesses already navigating the administrative requirements in 2026.”
Malcolm Henderson, Director of Compliance
2. Industrial Energy Costs
What Has Changed
• From 1 April 2027, over 10,000 eligible energy-intensive manufacturers in Great Britain will be exempt from the indirect costs of the Renewables Obligation, Feed-in Tariffs and Capacity Market under the British Industrial Competitiveness Scheme (BICS).
• The Climate Change Levy (CCL) main rate on electricity will be frozen from 1 April 2028.
What Stays the Same
• The Energy Intensive Industries (EII) Exemption is unchanged.
• ETS/CPS Compensation is unchanged, and continues alongside BICS.
What It Means for Businesses
• BICS: eligible sites could see electricity bills fall by 20–25%, with a back payment for 2026-27. Applications are open now, with a deadline of 30 November 2026.
• CCL freeze: a separate measure from April 2028.
3. Capital Allowances
What Has Changed
• The main rate first-year allowance (FYA) rises from 40% to 50% from 1 January 2027.
• The main rate writing-down allowance (WDA) falls from 14% to 12% from 1 April 2027 for corporation tax and 6 April 2027 for income tax.
What Stays the Same
• Full expensing continues for companies.
• No change to the £1 million Annual Investment Allowance.
What It Means for Businesses
• More relief up front on new investment, as the first-year allowance rises from 40% to 50%.
• Slower relief on existing pools, as the writing-down allowance falls from 14% to 12%: half a pool now takes six years, not four.
“Reducing the rate of WDA increases the incentive for businesses to invest in new plant and machinery to qualify for FYAs, and makes it even more vital that businesses take advantage of these incentives.”
Mark Anthistle, Capital Allowances Manager
4. Innovation, Investment & Growth
What Has Changed
• A new 10% Founders’ Relief on up to £10 million of lifetime gains.
• The Enterprise Management Incentives 2 (EMI2) option limit doubles to £120,000.
• The Business Asset Disposal Relief (BADR) lifetime limit falls from £1 million to £500,000.
• A new scale-up programme for women founders.
What Stays the Same
• No change to Patent Box.
What It Means for Businesses
• Qualifying founders of high-growth companies pay 10% Capital Gains Tax (CGT) on up to £10 million of lifetime gains from 6 April 2027. The design of the relief is subject to consultation.
• Gains above the limit are taxed at the normal rates of 18% or 24%.
• Owners relying on BADR may pay more.
• Women founders gain a new scale-up programme, with British Business Bank commitments to women-led businesses and funds doubled to £200 million.
5. Property Taxation & SDLT
What Has Changed
• From 29 October 2026, Stamp Duty Land Tax (SDLT) group relief is withdrawn where a purchaser leaves a group after the vendor company is wound up. This applies in England and Northern Ireland.
• Property income tax rises a further 2 points, to 24%, 44% and 49%, from 6 April 2027.
What Stays the Same
• No change to SDLT rates for commercial or mixed-use property.
What It Means for Businesses
• Group structures used to acquire property need checking.
• Personally held portfolios face higher income tax from April 2027.
6. Land Remediation Relief
What Has Changed
• No change announced to Land Remediation Relief.
What Stays the Same
• The relief remains available for qualifying expenditure on contaminated and long-term derelict land.
What It Means for Businesses
• The relief still applies to qualifying remediation costs.
• Separately, small residential brownfield sites (up to 1.5 hectares) in England will no longer need to meet Biodiversity Net Gain rules, which can lower costs on the same sites. Timing is to be confirmed.
“The Autumn Budget confirmed that proposed Land Remediation Relief reforms regarding claim timing, derelict land eligibility and contamination definitions will not proceed at present. As such, the existing legislation remains unchanged, although HMRC could review its guidance and may consider future reforms.”
Tom Goodier, Assistant Manager - Technical Consultants
Key Dates
28 October 2026
• Budget delivered.
• SDLT group relief change takes effect from 29 October.
30 November 2026
• Deadline for BICS applications.
1 January 2027
• Main rate first-year allowance rises from 40% to 50%.
1 April 2027
• BICS starts.
• R&D Claim Notification Form removed for new claims.
• Main rate writing-down allowance falls from 14% to 12% (corporation tax).
6 April 2027
• Founders’ Relief and new BADR limit.
• Main rate writing-down allowance falls from 14% to 12% (income tax).
• Property income rates rise.
Autumn 2027
• R&D Additional Information Form simplified.
April 2028
• Duty to correct errors in returns.
• Climate Change Levy on electricity and LPG frozen (new).
• Carbon Price Support removed (announced earlier this year).
Next Steps
Check what applies to you. Use the summaries above to identify the measures relevant to your sites, investment plans and claims.
Note the dates. Most measures depend on when expenditure is incurred or claims are made. The timeline sets out the dates confirmed so far.
Talk to a specialist. If a change affects your plans, our team can review your position against the published detail.
This article is based on the Budget documents published on 28 October 2026 and is for general information only. It is not tax advice. Proposals may change before legislation is enacted, and the effect on any business depends on its circumstances.
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29/10/2026
Hector Simpson
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24/08/2026
Oliver Mountford
