ICAEW podcasts

UK Chancellor John Healey had a huge challenge with his first budget. It had been trailed as a ‘steady as she goes’ budget – was it successful? In our usual budget analysis episode, we break down the various measures outlined in the budget, the economic backdrop that informed the Chancellor’s decisions, the winners and losers, and what it all might mean for the coming year.

The government has confirmed that taxpayers who are due to join Making Tax Digital (MTD) for income tax from April 2027 will not be given penalty points for late submission of quarterly updates for 2027/28.

For 2027/28 onwards, individuals who are above the state pension age may receive the pension tax allowance in addition to their personal allowance, increasing the amount of income they can receive without having to pay income tax.

There was mixed news for entrepreneurs in the budget, with the announcement of a new capital gains tax relief (CGT) for founders of innovative companies and a cut in the lifetime limit for business asset disposal relief (BADR).

The budget included a range of VAT measures affecting businesses, from e-invoicing and online marketplaces to social housing and electric vehicle charging.