For franchisors and franchisees, the Autumn Budget 2026 could have important implications for business growth, profitability and long-term planning. At EKW Group, franchise specialists supporting businesses across the franchise sector, we recognise that changes to taxation, business rates and compliance requirements can influence everything from the cost of running an established franchise to the financial viability of expanding a network. With businesses continuing to navigate rising costs and an uncertain economic outlook, understanding the potential Budget announcements will be essential for making informed decisions about investment, expansion and future growth.
As speculation builds ahead of the Chancellor’s Autumn Budget, attention is turning to the measures the Government may introduce to balance public finances while encouraging economic growth. Capital taxes, business taxation, property and tax compliance are all potential areas of focus, although the final announcements remain uncertain.
For franchise businesses in particular, the key question is how any changes could affect day-to-day operations, the relationship between franchisors and franchisees, and plans for future expansion. Here, we explore the main areas to watch and what they could mean for businesses preparing for the year ahead.
General expectations
Burnhams continued commitment to addressing the cost-of-living crisis suggests a focus on targeted tax measures that protect the UK’s fiscal position while supporting businesses and households. Capital taxes, business rates and tax compliance could feature prominently, although the final measures remain uncertain.
Capital Gains Tax and Reliefs
Capital Gains Tax (CGT) remains an area to watch, particularly for business owners planning an exit, investors disposing of assets and individuals considering major financial decisions.
Recent speculation has focused on whether CGT rates could move closer to Income Tax rates, which could discourage investment and prompt individuals to reconsider when and how they dispose of assets. A more targeted adjustment may therefore be more likely than wholesale reform.
Business Asset Disposal Relief (BADR) is another area of interest for entrepreneurs planning to sell their businesses. Following previous changes to the relief, business owners will be watching for any additional announcements affecting the tax treatment of qualifying disposals.
What could this mean for you?
If you’re planning to sell a business, dispose of investments or transfer assets, review the possible tax implications before making any decisions. While the timing of a disposal can affect your tax position, acting solely on Budget speculation can create unnecessary risks.
Inheritance Tax
Inheritance Tax (IHT) remains a concern for families, business owners, and individuals planning how to pass on their wealth.
Changes to Agricultural Property Relief and Business Property Relief took effect from 6 April 2026, and under the revised rules, a £2.5 million allowance applies to qualifying agricultural and business property eligible for 100% relief, with 50% relief generally applying to qualifying value above the allowance. Unused allowances can be transferred to a surviving spouse or civil partner, subject to the rules.
These changes are already in force, so the question for the Autumn Budget is whether the Government will introduce further changes or leave the new framework to settle.
What could this mean for you?
If you own a family business, agricultural property or a substantial estate, review your existing estate plan against the rules currently in force. Consider how ownership structures, lifetime gifts and the availability of reliefs affect the position of your beneficiaries.
Pensions and tax-free cash: will the rules change?
Pensions remain an important part of long-term financial and estate planning. The Government has already announced changes to the treatment of unused pension funds and pension death benefits for Inheritance Tax purposes, due to take effect from 6 April 2027.
Under the planned rules, most unused pension funds and pension death benefits will be included in the value of a person’s estate for IHT purposes, subject to the detailed legislation and applicable exclusions.
This means pension planning increasingly needs to consider both retirement income and the potential tax consequences for beneficiaries.
There is also ongoing interest in pension tax relief and the tax treatment of retirement savings. Changes to these areas might have considerable consequences for higher earners and those approaching retirement, although further changes have not been confirmed.
What could this mean for you?
Review your pension arrangements as part of your wider financial plan, particularly if you intend to pass unused pension wealth to your family. Consider how your pension interacts with other assets, your expected retirement income and your estate’s potential tax liabilities.
It’s best to avoid making substantial withdrawals or changing your arrangements based solely on speculation – the right approach will depend on your circumstances and the rules that ultimately apply.
Business tax
The Government has committed to retaining the main Corporation Tax rate at 25% for the remainder of this Parliament. The small profits rate remains 19% for companies with profits of £50,000 or less, subject to the applicable rules, including those governing associated companies and marginal relief.
Against this backdrop, significant changes to the headline Corporation Tax rate appear less likely than targeted adjustments to reliefs, compliance requirements or sector-specific measures.
While the Government has already announced a 20% reduction in business rates bills for eligible pubs, social clubs and live music venues in England from April 2027, wider reform, including the treatment of smaller businesses, remains an important issue for the high street.
What could this mean for you?
Franchisees should understand how their current tax position affects cash flow, operating costs and plans to open additional locations. Franchisors should also consider how changes to business costs could affect franchisee profitability, network expansion and investment decisions. Reviewing your financial position now can help you respond more effectively to any confirmed Budget measures.
Property and rental income
Property taxation will remain a key concern for landlords and property investors, particularly as they assess rental profitability, ownership structures and long-term investment plans.
Conversations surrounding ‘mansion tax’ in particular, are getting louder. The existing High Value Council Tax Surcharge is due to take effect from April 2028 for qualifying residential properties in England valued at £2 million or more under the announced framework. Some commentators have suggested that the threshold could be lowered, although this too remains a prediction rather than confirmed policy.
What could this mean for you?
For franchise businesses, property costs can have a direct impact on profitability, particularly where premises, leases or multiple locations form part of the operating model. Landlords and investors should review rental income, financing costs, maintenance and potential tax liabilities when assessing their portfolios. Before buying, selling or restructuring property, consider the current rules and seek appropriate professional advice.
Tax compliance
Alongside potential changes to tax rates and reliefs, businesses and individuals should watch for further measures aimed at improving tax compliance and reducing avoidance.
Recent Budget commentary has highlighted the possibility of changes to the VAT rules for online marketplaces, alongside greater investment in HMRC’s compliance capabilities. The Government has also been considering how to improve the administration of the tax system.
What could this mean for you?
For businesses, this could mean greater scrutiny of VAT reporting, transactions and record-keeping. Make sure your financial records are correct, your reporting processes are up to date, and your business understands its existing tax obligations. If new measures are announced, early preparation can help you identify any revisions required to your systems or procedures.
Know your business, know the budget
The Autumn Budget 2026 may bring targeted changes rather than a complete overhaul of the tax system. For franchisors and franchisees, understanding how any announcements could affect operating costs, profitability, investment and expansion will be important when planning for the year ahead.
Taking time to review your business position and understand the confirmed measures can help you make informed decisions and identify potential opportunities for growth.
