John Healey, Chancellor of the Exchequer in the Burnham government, confirmed on 6 August 2026 that his first Budget will be delivered on 28 October 2026. That is 78 days from today.
For business owners, directors, landlords, and investors, the next 78 days represent one of the most important planning windows of the year. Not because the Budget will necessarily bring dramatic change — it may not — but because acting before a Budget is almost always cheaper than acting after one. Once the Chancellor sits down, new rules can take effect immediately or from the start of the following tax year, and the opportunity to act under the current rules is gone.
This article sets out what CoreAcc Accountants believes is most likely to change on 28 October, what is unlikely to change, and the specific actions worth taking now while you still have time.
The Context: A New Government, a Tight Fiscal Position
Andy Burnham became Prime Minister on 20 July 2026. John Healey's appointment as Chancellor followed immediately. This is a relatively new leadership team delivering their first full fiscal statement, and it comes against a difficult backdrop.
The OBR's most recent forecasts show that the headroom against the government's own fiscal rules — requiring net financial debt to be falling by 2029/30 — is narrow. The Bank of England held rates at 3.75% on 30 July 2026, with three MPC members already voting for a rise. Inflation remains above target at 2.6%. Energy prices are volatile. The combination of above-target inflation, constrained fiscal headroom, and a new Chancellor wanting to demonstrate credibility makes significant tax cuts unlikely. Tax rises, particularly ones targeted at wealth and investment income rather than employment income, are more plausible.
What the Government Has Already Confirmed
Before speculating on what might change, it is worth being clear about what the Burnham government has already locked in.
The main Corporation Tax rate will not exceed 25% for the duration of this parliament. This was confirmed in August 2026 and provides genuine certainty for business planning — companies investing in equipment, hiring, or expanding can do so knowing the headline CT rate is fixed.
The VAT cut on domestic electricity to 0% from October 2026 has been confirmed. This is a domestic relief — business electricity remains at 20% VAT.
The Business Rates reform programme continues moving through Parliament, with proposals to replace the current system with a revenue-based model. This is a multi-year reform rather than a Budget announcement.
These confirmed positions are helpful context. What remains uncertain — and what the Budget will determine — is everything else.
What CoreAcc Accountants Believes Is Most at Risk
Capital Gains Tax. This is the area of greatest uncertainty. CGT rates were last raised in October 2024, when the main rate on most assets moved to 24% and the residential property rate aligned to the same level. There is persistent credible commentary that Healey may seek to align CGT rates more closely with Income Tax rates — which would mean gains taxed at 40% or 45% for higher and additional rate taxpayers, rather than the current 24%. If this happens, the impact on property sales, business disposals, and investment portfolios would be substantial. Business owners with unrealised gains who are already considering selling should take advice before 28 October.
Pension tax relief. The previous Chancellor made no changes to pension annual allowance or the rate of tax relief, leaving the current £60,000 annual allowance and 40—45% higher-rate relief in place. There is ongoing pressure to reduce higher-rate pension relief to a flat 25% or 30% — a change that has been proposed and rejected multiple times by successive governments. If introduced, it would fundamentally change the economics of employer pension contributions for higher-rate director-shareholders. Acting to maximise pension contributions now, using carry-forward from prior years, removes the risk that a reduction applies before you act.
Inheritance Tax. The April 2026 changes to Business Property Relief — introducing a £2.5 million cap on 100% relief — were the most significant IHT reform in decades. It is possible the Budget builds further on these changes, potentially targeting Agricultural Property Relief, pension assets, or the use of trusts. Business owners with significant IHT exposure should review their position before October.
Dividend tax. Rates rose by two percentage points from April 2026. A further increase is possible, though less likely than CGT changes given the scale of the April 2026 increase. Director-shareholders drawing significant dividends should consider the timing of dividend payments before and after the Budget.
Employer NI threshold. The secondary threshold fell to £5,000 in April 2025. Any further reduction — or a freeze at the current level — would increase employer NI costs. Conversely, an increase in the Employment Allowance above its current £10,500 ceiling would benefit smaller employers. Either is possible.
What CoreAcc Accountants Believes Is Unlikely to Change
Income Tax rates and thresholds. The Burnham government has not signalled any intention to move the basic or higher rate of Income Tax. The personal allowance freeze at £12,570 through to 2028 is already embedded in fiscal planning.
Corporation Tax rates. As confirmed above, the 25% cap is locked in. No change expected.
ISA allowances. The overall £20,000 limit is frozen until 2030/31. The Cash ISA reduction for under-65s from April 2027 is already legislated.
VAT registration threshold. Currently £90,000. No signals of movement.
The annual pension allowance of £60,000. Unlikely to be reduced in the short term given that it was increased from £40,000 as recently as April 2023. However, the rate of relief remains in scope.
The Actions Worth Taking Before 28 October
This is the most important section of this article. Whatever the Budget brings, acting before it removes the risk of being caught by changes that apply immediately or retrospectively to the start of the tax year.
Review your CGT position. If you own assets with unrealised gains — investment properties, shares outside an ISA, business assets — and you are already considering selling, consider whether completing before 28 October at current rates (24% for most assets) is preferable to waiting and risking a higher rate. A CGT calculation now costs far less than a larger tax bill later.
Maximise pension contributions. Make any planned employer pension contributions from your company before the Budget. If you have carry-forward available from prior years, use it now. A flat-rate relief regime would make the current higher-rate relief significantly less valuable and may not be grandfathered for existing pension pots.
Time dividend payments. If you are planning to pay yourself a dividend from your company, taking it before 28 October means it is taxed under the current rates regardless of what the Budget announces. This is particularly relevant for directors sitting on substantial retained profits.
Review your ISA allowance. If you have not used your 2026/27 ISA allowance, start now. £20,000 per person per year — use it or lose it.
Take IHT advice if your estate is above the nil-rate bands. If the Budget extends the BPR and APR changes introduced in April 2026, or introduces new IHT measures, acting before 28 October could be significantly more tax-efficient than acting after.
What CoreAcc Accountants Will Do on Budget Day
CoreAcc Accountants will publish a full analysis of every Budget announcement relevant to our clients as soon as John Healey sits down on 28 October 2026. We will cover Corporation Tax, Capital Gains Tax, Income Tax, IHT, pension, employment, and VAT measures — and we will set out specific actions for business owners, landlords, and investors in plain terms.
If you want to discuss your pre-Budget position before then, contact us today. The planning window is 78 days and counting.
Contact CoreAcc Accountants today for a pre-Budget review of your tax position.
CoreAcc Accountants is an ACCA-accredited firm of Chartered Certified Accountants. This article was published on 11 August 2026 and reflects information available at that date. It does not constitute financial or tax advice. Always seek specific advice for your individual circumstances.
