Some businesses and entrepreneurs
The threshold for qualifying retail, hospitality and leisure properties to receive full Small Business Rate Relief will rise from a rateable value of £12,000 to £18,000 in April 2027.
The threshold for tapered relief will increase from £15,000 to £21,000. The Treasury estimates that an additional 70,000 high street businesses will consequently pay no business rates.
The tax-free trading allowance for self-employment and miscellaneous income will also triple from £1,000 to £3,000.
Businesses will receive a higher first-year capital allowance of 50 per cent, up from 40 per cent. However, the main writing-down allowance will be reduced from 14 to 12 per cent.
The lifetime limit for Business Asset Disposal Relief will fall from £1million to £500,000. At the same time, a new Founders’ Relief will offer qualifying founders of high-growth and innovative companies a 10 per cent capital gains tax rate on up to £10million of lifetime gains.
Ms Patel said: “Throughout the Budget, the Chancellor was keen to encourage British entrepreneurship.
“Founders looking to extract profits have been spared an increase to dividend tax rates, but the lifetime limit on Business Asset Disposal Relief for CGT will be reduced from £1m to £500,000.
“In replacement, a new CGT Founders Relief of 10% on up to £10m of lifetime gains for qualifying founders of high-growth, innovative companies is introduced.”
Households receiving energy support
Around 20 million households in England will receive a £100 payment from January 2027 if their properties are in council tax bands A to D.
The Chancellor also confirmed plans to remove gas standing charges and extended the temporary zero rate of VAT on domestic electricity until July 2027.
However, removing the standing charge will not eliminate the cost of maintaining the gas network. The expense will instead be moved into unit rates, meaning households using more gas could pay more.
Ms Patel said: “This targeted support on energy bills will come as no surprise as households have grappled with rising energy costs as a by-product of the conflict in the Middle East.
“This measure is an attempt by the Chancellor to soften the blow, but forces in the energy markets beyond his control will continue to push up the unit costs of gas, likely offsetting savings elsewhere.”
Shoppers
The Government is temporarily suspending tariffs on more than 100 additional imported products, including marmalade, baked beans, garlic and gherkins.
Kerosene heating oil and fertiliser are also covered, potentially reducing costs for rural households and farmers.
Ms Patel said: “Those partial to a marmalade sandwich will be heartened as the Chancellor announced a number of tariff suspensions across a further 100 household food items, including baked beans, garlic and citrus jams, not exclusively from deepest, darkest Peru.
“By cutting costs for domestic businesses buying these products from overseas sellers, the hope is that savings will be passed on to consumers via falling prices.”
However, there is no guarantee that retailers will pass the full savings on to shoppers.