Here are the big tax changes for UK businesses in Rachel Reeves’s budget
Chancellor Rachel Reeves has delivered her Budget in parliament, promising to back British business through the tax system.
“We know businesses have faced significant challenges in recent years, and they need clear support to recover and grow,” she said on Wednesday (26 November).
“That’s why this Budget delivers targeted tax measures to cut costs, unlock investment, and create new opportunities – helping firms innovate, expand and thrive in a fairer, more competitive economy.”
Below are some of the key business tax changes to be aware of:
- Permanent lower business rates tax rates for over 750,000 retail, hospitality and leisure properties, worth nearly £900 million a year from April 2026.
- A £4.3 billion business rates support package will cap business rates bill increases for sectors hit hardest by revaluations from April 2026.
- Film studios: a one-year extension to 40% business rates relief for film studios.
- Ending exploitation of the Tour Operators’ Margin Scheme by a small number of private hire vehicle operators, ensuring fairness for all taxi drivers.
- Ending the low-value import relief: Closing the customs arrangements that allowed some online retailers to import their goods duty free, ensuring all businesses pay equivalent tariffs.
- Gambling tax: No changes for in-person betting or horse-racing, and we will abolish bingo duty from April 2026 – recognising the cultural value these provide for millions across the country
- Fuel duty: Extending the temporary 5p fuel duty cut for a further five months until the end of August 2026 to keep van and lorry journeys affordable. Heavy Goods Vehicles are set to save £843 next year.
- Pro-growth: Bringing in a permanent 40% First Year Allowance for main rate assets, giving businesses a strong incentive to invest in the future. The government is also keeping the £1 million Annual Investment Allowance offer to offer immediate tax relief on plant and machinery equipment.
- Electric Vehicle support: £2 billion support for the EV transition and 10-year 100% business rates relief for eligible changepoints and EV-only forecourts, cutting costs for businesses. Also a one-year extension to the 100% first-year allowances for businesses buying zero-emission cars and chargepoint infrastructure to April 2027.
The government added that it is maintaining the lowest corporation tax rate in the G7 (25%) and introducing targeted reliefs for SMEs and high street firms, ensuring the system is fair and supports local businesses.
“The net impact is a more level playing field, with measures designed to reduce costs for local businesses, unlock capital for growth, and modernise the tax system to encourage investment.
“This Budget delivers for the high street SMEs, scale-ups, and firms investing in infrastructure or listing in the UK stand to gain through lower operating costs, targeted tax reliefs, and increased funding opportunities.”
