Commercial Finance / Property Investment · 4 min read
Budget 2026 Relief: Chancellor Reportedly Rules Out Capital Gains Tax Hike
Written by Paul Thompson, Acorn.finance. Last reviewed: .
Ahead of the highly anticipated Autumn Budget on 28 October, property investors and SME business owners have been holding their breath over widespread rumours of a Capital Gains Tax (CGT) hike.
However, in a significant boost to market confidence, multiple mainstream outlets — including The Financial Times, The Times, and the Financial Reporter — have revealed that Chancellor John Healey has reportedly rejected proposals to increase CGT rates or equalise them with Income Tax.
For Acorn.finance clients — whether you are a portfolio landlord restructuring your assets or a healthcare professional preparing for a practice buy-out — this signals a window of vital stability.
The threat of capital flight
In the weeks leading up to the Budget, industry bodies heavily lobbied the Treasury against equalising CGT rates with standard Income Tax. Such a move would have seen higher-rate taxpayers face a punishing 40% or 45% tax on asset disposals.
According to MoneyAge and ITV News, the Chancellor ultimately dismissed the hike over well-founded fears that aggressive tax increases would deter investment and prompt internationally mobile wealth creators to defer sales or exit the UK entirely.
This aligns with Healey’s recent address where he stressed the importance of protecting the private sector, stating:
“I want to see this country as a country of wealth creation... to raise the levels of confidence, and investment, and profit in British business.”
What are the current CGT rates for 2026/27?
With a rate hike reportedly off the table, the current Capital Gains Tax framework for the 2026/27 tax year remains in force:
| Item | 2026/27 |
|---|---|
| Annual tax-free exemption (individuals) | £3,000 |
| Basic rate taxpayers | 18% on taxable gains |
| Higher & additional rate taxpayers | 24% on taxable gains |
| Business Asset Disposal Relief (BADR) | 18% on qualifying business assets |
What this means for property investors & landlords
The prospect of a CGT hike had effectively paralysed the Buy-to-Let market. Landlords wishing to sell underperforming properties to fund EPC retrofits on the rest of their portfolio were holding off, fearing a 40% tax wipeout.
With rates holding steady at 18% and 24%, landlords can confidently proceed with portfolio restructuring. If you need to raise capital without triggering a taxable disposal, Landlord Rent Advance or a Second-Charge Bridging Facility remain highly tax-efficient ways to unlock liquidity without selling the underlying asset.
What this means for commercial business exits
For our commercial clients — particularly those in the dental, veterinary, and pharmacy sectors looking toward retirement — this is excellent news.
Selling a healthcare practice or a commercial premises often triggers a substantial capital gain. By avoiding an equalisation with Income Tax, retiring owners can execute their succession plans and practice buy-outs without losing nearly half their life’s work to the Treasury.
Looking ahead to 28 October
While CGT rates appear safe, the Autumn Budget may still introduce subtle tweaks. Financial analysts note that the Chancellor could still review the £3,000 tax-free exemption threshold or introduce new compliance measures around commercial property reliefs.
Whatever the outcome on Budget Day, navigating asset disposals and business sales requires agile capital.
Selling a business or restructuring your property portfolio? Get ahead of the Budget. Request a callback today to speak with an Acorn.finance commercial broker about practice acquisition finance, bridging, and tax-efficient portfolio restructuring.
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This article is general information only and is based on media reports published before the Autumn Budget; it is not tax, legal or financial advice. Tax rates, allowances and reliefs may change and depend on your individual circumstances — please take advice from a qualified tax adviser before making any disposal. Acorn.finance does not provide tax advice. Finance is subject to status, valuation and lender criteria. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Acorn.finance is FCA-regulated (firm reference number 660207).