Autumn Budget 2026

The Autumn Budget 2026 brings a mixture of new opportunities and challenges for business owners, with some significant changes to the tax landscape.

While qualifying founders of high-growth, innovative companies stand to benefit from a new Founders’ Relief, the reduction in the lifetime limit for Business Asset Disposal Relief will affect other entrepreneurs and business owners. Businesses will also need to consider changes to capital allowances and what these could mean for future investment decisions.

Our expert team of sharp minds has been following the Autumn Budget announcements closely and have shared their immediate reactions via the links below. 

Personal Tax

Corporate Tax

Specialist Tax

Employer Services

VAT

Personal Tax

The 2026 Autumn Budget has introduced a wide range of changes which affect the taxation of individuals, including changes to ISAs, Income Tax rates and Capital Gains Tax rates. We have summarised some of the key changes below.

Cash ISAs

The previously proposed reduction to the amount that can be held in a Cash ISA will not proceed. The annual Cash ISA subscription limit will remain £20,000. The government has also said that it will explore a new ISA incentive for people opening stocks and shares ISAs for the first time.

Capital Gains Tax and Business Asset Disposal Relief

There is a significant change for business owners planning to sell their business or business interests, for example, a sole trade, shares in a trading company or an interest in a partnership. From 6 April 2027, the lifetime limit for gains qualifying for Business Asset Disposal Relief (BADR) will be reduced from £1m to £500,000. Qualifying gains within the lifetime limit continue to benefit from the reduced 18% Capital Gains Tax rate. This will increase the potential tax payable on a future sale by up to £30,000. Therefore, for business owners considering an exit, they may wish to factor in the timing of their potential exit.

New Founders' Relief

In contrast to the restriction in BADR, the Budget introduces a substantially more generous new relief targeted at founders. From 6 April 2027, Founders' Relief will provide qualifying founders of high-growth, innovative companies with a 10% CGT rate on up to £10m of lifetime gains. The detailed qualifying conditions are subject to technical consultation, so founders contemplating future exits will need to understand carefully whether they fall within the new regime. It will also be important to understand whether previous claims for BADR use some of the Founders’ Relief limit.

Based on the initial policy documents, the relief will only apply to larger companies (with turnover over £10m in the accounting period prior to sale) and there will be a number of complex conditions for both the individual selling the shares and for the company to meet before relief is available. For example, the individual would have to own 25% of the shares when the company commences trading, and the company must have grown at a rate of 25% over three consecutive years. Therefore, relief may only be available to a limited number of individuals in practice. Taken together, the BADR and Founders' Relief announcements represent a significant shift in the tax treatment of entrepreneurs, with a more targeted incentive focusing on founders of high-growth businesses.

Trading Allowance

The Income Tax Trading Allowance will triple from £1,000 to £3,000 from 6 April 2027, allowing individuals to receive up to £3,000 of qualifying trading and miscellaneous income tax-free each year. Where you claim the trading allowance, you cannot also claim expenses and so it is usually only claimed where either the gross income is less than the limit or where the total expenses are under the limit. This is an important relief for individuals who have relatively small amounts of trading income from a “side hustle”, such as online selling, freelance work, etc.

Self-Assessment payments

The way many Self-Assessment taxpayers pay their tax will change. From April 2029, individuals who currently make Payments on Account will instead be required to make more regular in-year payments towards their final tax liability. The intention is to bring payment closer to the point at which income is earned and reduce the risk of taxpayers facing large unexpected bills. The government had previously consulted on these proposals and has rowed back from their initial suggestion that individuals with PAYE income would be forced to pay their Self-Assessment bill through PAYE. However, they have confirmed that they intend to proceed with increasing the frequency of in-year payments, with more detail on the precise proposals in due course (including the key matter of the frequency and timing of payments).

Debt collection

HMRC will have the power to collect debts directly from an individual’s bank account, including joint accounts. While HMRC has promised that it will only apply where taxpayers fail to engage with HMRC and where there is an “established tax debt”, the implementation of this measure led to concerns being raised by professional bodies. In particular, there are concerns about the accuracy of HMRC’s actions, whether debts considered by HMRC to be established are in fact due, and the inclusion of joint accounts.

Pensions

A new Pension Tax Allowance will operate from 6 April 2027 until 5 April 2030. It is designed to prevent pensioners whose total income is no more than the full new State Pension from facing small Income Tax liabilities simply because increases in the State Pension take it above the Personal Allowance. A taper will apply for those with income just above the full new State Pension.

Individuals over State Pension age will be eligible for the Pension Tax Allowance, regardless of whether their income is derived from the State Pension or other sources. Where total income does not exceed £13,037, the full Pension Tax Allowance will be available, which should reduce the Income Tax liability to nil. Where total income is between £13,037 and £13,319, a tapered Pension Tax Allowance will be available, reducing the resulting tax liability. No Pension Tax Allowance will be available where total income exceeds £13,319. The thresholds will increase in future years in line with increases in the State Pension.

There are also technical pension changes, including the removal from 28 October 2026 of the two-year rule that can cause pension and lump-sum death benefits to become taxable simply because payment takes place more than two years after death. This may occur, for example, where a pension pot is not discovered until after the two year period has ended. As such, this is a welcome change.

Inheritance Tax 

There is no headline reform of Inheritance Tax (IHT), but the government is tightening the rules governing the deduction of liabilities involving trust property and making minor changes to the implementation of the rules that apply IHT to pensions from 6 April 2027.

First-time buyers

A new First Time Buyer ISA will be introduced from April 2029, replacing the Lifetime ISA for new savers. The government will pay a 25% bonus on withdrawal (capped at £20,000), with the bonus available towards qualifying first-home purchases up to £450,000. In addition, the government is introducing an equity loan scheme to support 70,000 first time buyers with up to 20% of government equity loans. Participants will benefit from a reduced deposit requirement and a five year interest free period, however this appears to be limited to properties in England.

Property income

The tax rates applied to property income will increase from 20% (basic rate), 40% (higher rate) and 45% (additional rate) to 24%, 44% and 49% respectively from 6 April 2027. This changes the previously announced increase in rates across each tax band from 2% to 4%. This change applies automatically to English, Welsh and Northern Irish taxpayers. It does not apply automatically in Scotland, but we would expect the Scottish government to introduce similar changes at the upcoming Scottish budget.

Savings income

The tax rates applied to savings income (e.g. bank and other forms of interest) will similarly increase from 20% (basic rate), 40% (higher rate) and 45% (additional rate) to 24%, 44% and 49% respectively from 6 April 2027. This change applies automatically across the UK, including Scotland.

Changes to corporate distributions

The government is consulting on a number of changes to how distributions from companies are taxed. Three key areas HMRC are looking to update are:

• Distributions from non-UK companies: The current rules are complex and not always clear. The government is aiming to bring the treatment of these in line with the treatment of distributions from UK companies.
• Purchase of own shares: This is where a company purchases its own shares from its own shareholder. This is often used, for example, where the older generation are looking to retire or where the company wants to buy out a dissenting shareholder. Where certain conditions are met, the payment is subject to Capital Gains Tax (at a maximum rate of 24%) compared with the usual dividend rate of up to 39.35%. The government is proposing to significantly tighten the conditions which have to be met in order to obtain capital treatment. As such, if you are considering a purchase of own shares, we recommend considering the timing of this, as the rules may become stricter in future.
• Transactions in securities: These are anti-avoidance rules to ensure that transactions designed to obtain an Income Tax advantage are subject to Income Tax where appropriate. The government is considering reforming and modernising these rules.

Corporate Tax

Corporation Tax

The government has reaffirmed the commitments set out in its Corporate Tax Roadmap, published ahead of the Autumn 2024 Budget. This gives companies greater certainty over key aspects of Corporation Tax until the end of the current parliament.

The main Corporation Tax rate remains capped at 25%, with the small profits rate remaining at 19%.

Capital allowances

The First Year Allowance (FYA) for qualifying main-rate plant and machinery expenditure is 40% for expenditure incurred from 1 January 2026 and will increase to 50% from 1 January 2027.

The allowance covers qualifying new and unused assets, including assets acquired for leasing (excluding overseas leasing), and expenditure incurred by unincorporated businesses, providing accelerated tax relief on qualifying investment.

The main Writing Down Allowance (WDA) rate will reduce from 14% to 12%. This will apply from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax.

The announcements provide some continuity for businesses planning significant capital investment, although other capital allowance changes will affect expenditure that does not qualify for full expensing. Businesses contemplating material capital expenditure should therefore consider the timing and nature of investment and whether expenditure can qualify for full expensing or the enhanced First Year Allowance.

Reform of company distributions and capital reduction demergers

The government has confirmed its intention to proceed with significant reforms to the taxation of company distributions and related transactions. Although the detailed rules have yet to be finalised, the proposals could have far-reaching implications for owner-managed and family businesses, affecting common restructuring strategies such as demergers, capital reductions, group reorganisations and the separation of different business activities.

While genuine commercial transactions should continue to benefit from capital treatment, some longstanding routes to achieving tax-efficient separations may become less attractive under the new regime.

Draft legislation is expected to be published for consultation during 2027, with implementation currently anticipated from April 2028. Businesses considering a reorganisation, demerger or succession plan may therefore benefit from acting sooner rather than later. The current rules remain available for now, creating a potentially valuable window of opportunity to implement structural changes before the new regime is introduced.

However, the proposed changes will remove a long-standing, cost-effective route to separating businesses. Existing structures should review their options now, while there is still time to plan ahead.

Advance Tax Certainty Service

In a significant move to support a broader range of enterprises, HMRC is lowering the entry threshold for its Advance Tax Certainty Service. HMRC's Advance Tax Certainty Service, launched in July 2026, enables qualifying businesses to obtain binding clearance on the application of specified tax rules to major investment projects before the final investment decision and through to the relevant tax return. From 4 November 2026, the minimum qualifying UK project expenditure threshold will fall from £1 billion to £300 million, potentially extending access to a wider range of substantial investment projects. The service covers specified taxes, including Corporation Tax and VAT, but does not cover transfer pricing, for which HMRC's Advance Pricing Agreement programme remains available.

Foreign Permanent Establishment

For accounting periods beginning on or after 1 January 2027, the foreign Permanent Establishment (PE) exemption will become mandatory, preventing foreign PE losses from reducing UK Corporation Tax receipts.

Existing brought-forward losses attributable to foreign PEs will face a strict "hard stop" and be structurally restricted or lost entirely, as the mechanism to carry them forward to offset future UK profits is being repealed without transitional relief.

Foreign sovereign investors

A new statutory regime for foreign sovereign investors is also planned from 1 January 2029. This codifies existing arrangements where sovereign states and investments are exempt from direct tax in the UK, but will now bring certain UK real-estate income and gains, plus trades, into the UK tax net.

Corporate Interest Restriction

From 1 January 2027, the calculation of taxable earnings for Corporate Interest Restriction purposes will exclude Audio-Visual Expenditure Credits and Video Games Expenditure Credits. Businesses claiming these expenditure credits should consider the potential impact on their interest deductibility calculations.

Bank Corporation Tax Surcharge

The Bank Corporation Tax Surcharge doubles from 3% to 6% for 15 months from January 2027.

Specialist Tax

R&D Tax Relief Simplification

The removal of the Claim Notification Form requirement for claims made on or after 1 April 2027 is a welcome and pragmatic step. While the form was introduced to help HMRC identify new or unexpected claims, in practice it can create a procedural barrier for businesses undertaking genuine R&D. New and early-stage businesses may not consider R&D tax relief, or take advice on it, until after the notification deadline has passed, while existing claimants can also be caught by the complex interaction of the lookback and transitional rules. In both cases, an otherwise valid claim can be prevented for reasons unrelated to the substance of the R&D activity.

We are therefore pleased that the government has recognised the need for change. Removing the notification requirement should eliminate a procedural trap and help ensure that access to relief is determined by the underlying R&D activity and the quality of the claim. The proposed simplification of the Additional Information Form is also encouraging, although we will need to see the detailed legislation and revised information requirements to understand fully how the changes will operate in practice and whether they deliver the intended reduction in complexity.

We also welcome HMRC’s intention to consider the R&D claims process and underlying legislation more broadly. In particular, an examination of the ERIS intensity ratio is timely, as the current rules can produce anomalous outcomes. For example, non-cash accounting entries such as share-based payment charges can increase total expenditure and dilute a company’s intensity ratio, despite not representing an actual cost. The aggregation rules can also distort the position where an overseas group company is itself heavily invested in R&D, as its expenditure may increase the denominator without any corresponding recognition of its R&D expenditure in the numerator. We support measures aimed at simplifying the regime and ensuring it operates as intended, while retaining appropriate safeguards and enabling eligible companies to access the relief to which they are entitled.

​Employee Share Schemes

The Budget included a number of announcements aimed at strengthening the UK's tax-advantaged employee share scheme landscape and supporting growing businesses in attracting and retaining talent.

The individual share option limit under the Company Share Option Plan (CSOP) will increase from £60,000 to £120,000 from April 2027, alongside an extension of the maximum exercise period from 10 to 15 years. In addition, CSOP will be rebranded as "Enterprise Management Incentives 2 (EMI 2)" as part of a broader package intended to support businesses that have outgrown the existing EMI regime.

The current £250,000 combined limit that applies across Enterprise Management Incentive (EMI) and CSOP options will be removed. As a result, eligible employees will be able to hold up to £250,000 of EMI options and up to £120,000 of CSOP options, increasing the overall tax-advantaged share option limit across both schemes to £370,000.

A number of other reforms to EMI were also announced. These include extending the exercise period following a disqualifying event from 90 days to 180 days, allowing companies transitioning to an Employee Ownership Trust (EOT) structure to retain access to EMI, and permitting shares and share options set aside for employees to be held for up to 15 years without triggering the disguised remuneration rules.

The administration of EMI will also be simplified by removing the separate notification requirement for option grants and incorporating reporting into the existing annual EMI return process.

These changes will be legislated for in Finance Bill 2026-27 and are expected to take effect from 6 April 2027.

EIS, SEIS and Venture Capital Trusts

A package of measures affecting the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trust (VCT) regimes was announced. Alongside a review of HMRC's Advance Assurance service, intended to improve efficiency and the experience for founders and investors seeking investment, a number of targeted legislative changes will be introduced to simplify the operation of the reliefs and address technical issues that can result in disproportionate outcomes.

The proposed changes are intended to:

• Ensure that exceeding an EIS investment limit does not automatically result in the loss of all associated tax relief;
• Allow SEIS and EIS or VCT investments to be made on the same day;
• Prevent a late subscription by one or more investors from affecting the tax relief available to other investors;
• Align the SEIS rules on interest charged where relief is withdrawn or reduced with the equivalent EIS provisions; and
• Ensure that any withdrawal of VCT income tax relief is calculated using the rate that applied when the relevant shares were issued.

The VCT changes will generally apply to relevant disposals of shares issued on or after 6 April 2026, with the remaining measures expected to take effect from 6 April 2027.

Overall, the announcements represent a significant package of reforms aimed at improving the UK's employee share scheme and venture capital tax regimes, with a particular focus on simplification, increased flexibility and supporting growing businesses' access to talent and investment.

Employer Services

The Autumn Budget 2026 included a limited number of employment tax and payroll measures. For employers, the main implications relate to employment costs, expenses policies and future compliance requirements.

Parental pay reforms will also widen access to self-employed workers and aim to make support fairer for all. Alongside the wider Employment Rights changes being implemented to support employees and workers, these reforms add complexity for businesses, with costs and processes to manage.

Employers should first assess the minimum wage and mileage changes and any updates needed to payroll systems, budgets and policies. Longer-term measures should be considered alongside preparations for mandatory payrolling of benefits.

A quieter Budget does not ease compliance pressures. Employers should separate changes needing early action from those awaiting further detail, and keep implementation plans under review.

National Minimum Wage and National Living Wage

Statutory minimum wage rates will increase by 3.9% from 1 April 2027, adding to employment costs alongside employer National Insurance contributions (NICs).

• National Living Wage (aged 21 and over): £13.21 per hour.
• National Minimum Wage (aged 18–20): £11.27 per hour.
• National Minimum Wage (aged 16–17 and eligible apprentices): £8.31 per hour.

Employment expenses and mileage

• Mileage rates: The 55p tax-free rate for the first 10,000 business miles, introduced on 6 April 2026, will become permanent. This applies to employees using their own cars or vans for business travel. From 6 April 2027, the rate above 10,000 miles will rise from 25p to 35p per mile.
• Employment expenses claims: From 6 April 2028, the government will remove the £2,500 Self-Assessment employment expenses threshold. Employees will be able to claim tax relief without filing a Self-Assessment return solely for this purpose. The government will keep under review whether to make PAYE-based claims mandatory for taxpayers claiming only employment expenses.
• Business travel and subsistence: From April 2028, domestic Benchmark Scale Rates will be updated to better reflect current subsistence costs. Overseas Scale Rates will move from destination-specific rates to a simpler tiered approach, intended to reduce administration for employers.

Benefits in kind

The timetable for mandatory payrolling of benefits in kind (PBIK) is unchanged: cars, vans, fuel and medical benefits from 6 April 2027, with other benefits reported from April 2028.

Company car tax percentages for 2030/31 will rise from 9% to 10% for electric vehicles (EVs), and from 19% to 20% for vehicles in the 1–50g CO2 band.

The Immigration Skills Charge and Certificate of Sponsorship fees will no longer give rise to a taxable benefit.

PAYE and NIC

There were no changes to headline NIC rates.

From April 2029, businesses must set up direct debit arrangements for PAYE liabilities.

From July 2029, HMRC will gain powers to recover certain tax debts directly from taxpayers’ bank accounts where they repeatedly fail to pay despite having the means to do so.

Expanding parental pay

From April 2029, parental pay will extend to eligible self-employed fathers, partners and adopters who are currently excluded. It will also cover recently employed or unemployed people, and those with broken or irregular employment histories, who do not qualify for statutory paternity or adoption pay.

VAT

The Autumn Budget contained a number of significant VAT and indirect tax announcements, ranging from new reliefs and sector-specific reforms to longer-term changes to VAT administration and compliance.

While many of the measures will not take effect for some time, they point towards potentially significant changes in the way VAT is administered and collected in the UK. One of the clearest themes is a continuing shift towards making businesses and intermediaries responsible for collecting VAT at source.

Digitalisation is another major theme. Mandatory e-invoicing from April 2029 will represent a substantial change, while the accompanying consultation on digital reporting could lead to wider changes in the information businesses are required to provide to HMRC. Alongside new standards for point-of-sale software and Direct Debit requirements, the direction of travel is towards an increasingly digital and data-led VAT system.

There are also a number of targeted changes to VAT reliefs. These include a new zero rate for qualifying land sales to social housing providers, zero-rating for certain donated medicines and the inclusion of heat batteries within the energy-saving materials regime. At the same time, the temporary zero rate for energy-saving materials is due to end, with the relief reverting to 5% from April 2027.

For some sectors, the measures could have substantial commercial consequences. Online marketplaces, overseas suppliers of services and larger private hire operators will need to consider carefully how the new rules may affect their contractual arrangements, pricing, systems and VAT compliance.

Several important aspects remain subject to consultation or secondary legislation, so the detail will matter.

VAT administration and compliance

Mandatory VAT e-invoicing

The government has confirmed that mandatory VAT e-invoicing will be introduced from 1 April 2029.

Legislation will enable HMRC to make regulations requiring VAT invoices to be issued and received in a prescribed electronic format. The government has also published an implementation roadmap setting out how the new regime will be developed ahead of implementation.

Alongside this, the government has launched a consultation on digital reporting, which will run until 20 January 2027.

Direct Debit requirements

From April 2029, taxpayers will generally be required to set up a Direct Debit instruction for VAT return liabilities, subject to defined exceptions.

Businesses will still be able to use other payment methods before a specified cut-off date, with the Direct Debit instruction used to collect any remaining unpaid balance.

Tackling electronic sales suppression

The government will introduce mandatory software standards for Electronic Point of Sale and Mobile Point of Sale systems to tackle electronic sales suppression, sometimes referred to as “till fraud”.

HMRC will undertake further technical engagement with industry and publish a technical consultation in summer 2027. An implementation date has not yet been set.

Online marketplace VAT reforms

From October 2027, the VAT online marketplace liability rules will be extended to UK businesses.

Online marketplaces will become responsible for collecting VAT on qualifying sales made through their platforms by:

• UK VAT-registered businesses; and
• other UK businesses with annual sales through an individual platform of at least £90,000.

The rules will not apply to personal sales, sales of second-hand goods or business-to-business transactions.

This represents a significant expansion of the existing marketplace liability rules and will bring many transactions involving UK sellers within the marketplace collection regime.

Overseas services and reverse charge changes

From April 2027, the VAT reverse charge for business-to-business supplies of services from overseas will be restricted so that it applies only where the receiving UK business is VAT registered.

Where the UK business customer is not VAT registered, the overseas supplier will instead be required to charge and account for UK VAT.

This represents a potentially significant compliance change for overseas businesses supplying services to UK businesses that are not VAT registered.

Private hire sector reform

From 2 January 2028, new rules will apply to supplies of passenger transport services by taxi or private hire vehicle where those services are supplied through an agent.

The services will be deemed to be supplied by the agent rather than the driver, meaning affected private hire vehicle operators will be required to account for VAT on the full value of the fare.

The measure will apply only where the operator’s annual fare turnover exceeds a specified threshold. The government will consult on the level of that threshold, with £50 million of annual fare turnover the lead option.

Energy and environmental VAT measures

Domestic electricity

The temporary 0% VAT rate for qualifying domestic electricity supplies, introduced on 1 October 2026, will be extended for a further three months to 1 July 2027.

Energy-saving materials and heat batteries

From 1 April 2027, heat batteries will be added to the list of qualifying energy-saving materials eligible for VAT relief when installed in residential accommodation or charity buildings.

At the same time, the temporary zero rate for qualifying energy-saving materials will end and the relief will revert to the 5% reduced rate.

Public and workplace EV charging

Legislation will clarify that electricity supplied through publicly accessible and workplace electric vehicle charging points is subject to VAT at the standard rate of 20%.

The legislation will take effect from 1 November 2026 and will also confirm that such supplies are not treated as domestic use for Climate Change Levy purposes.

Housing

Social housing land

From 1 April 2027, a new zero rate of VAT will apply to qualifying sales of land to registered social housing providers, referred to in the measure as relevant Housing Associations.

Secondary legislation is expected to be laid before Parliament in early 2027.

Healthcare

Donated medicines

A new VAT zero rate will apply retrospectively from 23 June 2026 to medicines provided free of charge for qualifying purposes. The measure covers medicines supplied for NHS treatment, including through the Early Access to Medicines Scheme and other early-access arrangements, as well as medicines supplied in connection with clinical trials or continued treatment following a clinical trial.

Medical deputies

From 1 May 2027, the existing VAT exemption for the supply of a deputy for a medical practitioner will be removed.

A supply of a deputy for a medical practitioner will therefore become subject to the standard rate of VAT. However, deputising services will remain within the medical exemption where they are primarily providing medical care.

Tour Operators’ Margin Scheme

The government has launched a call for evidence on the VAT treatment of travel services, including the Tour Operators’ Margin Scheme (TOMS).

The review seeks views on whether TOMS remains fit for purpose and whether it should be retained, reformed, simplified, made optional, partly withdrawn or removed.
The government is also reviewing the treatment of travel services outside TOMS which are enjoyed in the UK but supplied by tour operators based outside the UK.

The call for evidence closes on 31 January 2027. No immediate legislative changes have been announced.

VAT126 Refund Claims

Finance Bill 2026-27 will contain an enabling provision allowing additional powers and safeguards relating to VAT126 claims to be introduced in future.

These are non-business VAT Refund Claims made by non-VAT-registered bodies, including local authorities and similar bodies, specified museums and galleries, academies, certain charities and other bodies specified by Treasury Order.

The enabling power will take effect from Royal Assent, with the detailed measures capable of being introduced subsequently through secondary legislation.

Deposit Return Scheme

Changes will be made to simplify the VAT administration of the Deposit Return Scheme.
The requirement for individual producers to account for VAT on unreturned deposits will be removed. Instead, the Deposit Management Organisation will account for that VAT.
The change will take effect when the Deposit Return Scheme launches in October 2027.

Customs and wider indirect taxes

Low-value imports

The government will reform the customs treatment of low-value imports entering the UK, with implementation brought forward to October 2028, six months earlier than previously announced.

The reforms are intended to bring the customs treatment of low-value imports closer to that applying to goods imported as freight and to support compliance and fair competition.

Fuel Duty

The 5p-per-litre fuel duty cut will be extended for a further six months to 1 July 2027, with the planned RPI increase in fuel duty also deferred until that date.

The temporary reduction in red diesel duty will similarly be extended to 1 July 2027. Red diesel duty will then return to its pre-March 2022 rate and be uprated in line with RPI.

Other indirect tax measures

The Budget also contains a range of other indirect tax measures, including changes relating to:

• Alcohol duty
• Tobacco duties and vaping products
• Electric Vehicle Excise Duty
• Climate Change Levy
• Landfill Tax
• Plastic Packaging Tax
• The Carbon Border Adjustment Mechanism.