A Budget 2026 calendar for South Hampshire business owners: what changes when, and how to time a premises purchase or refinance

Most Budget coverage lists measures by tax. Business owners plan by date. This piece lays out the Budget 2026 changes that matter to owners of trading businesses in Portsmouth and South Hampshire in the order they take effect, from January 2027 capital allowances through to the CPI caps on business rates in 2028-29, and then looks at how those dates could shape when you buy, extend or refinance the premises you trade from.

Why timing matters more than usual

Budget 2026 did not raise headline rates of income tax, National Insurance or VAT (Budget 2026, executive summary). Instead, several targeted changes land on fixed dates within a few months of each other in 2027. For a business owner who also owns, or wants to own, their premises, the order of those dates can affect tax on rent, relief on a sale, allowances on fit-out spending and the costs a lender sees in your accounts.

Nothing below is a reason to rush a purchase or a refinance. A building should be bought because the business needs it and the numbers work. But if a deal is already in view, it helps to know which side of each date it falls.

The calendar

29 October 2026: SDLT group relief tightened

The day after the Budget, a change to Stamp Duty Land Tax group relief took effect for property in England and Northern Ireland, so that relief "is withdrawn as intended when a purchaser leaves a corporate group, where the vendor company has been wound up" (para 6.169). This matters mainly to owners who move premises between companies in a group, for example into a property company ahead of a sale. If a restructure is planned, take tax advice before any transfer.

1 January 2027: higher first-year allowance

The main rate first-year allowance rises from 40% to 50% "for expenditure incurred on or after 1 January 2027" (para 6.251 and para 2.54). Full expensing is maintained and corporation tax stays capped at 25% (para 2.54). The Budget does not set out exactly which assets and businesses the main rate first-year allowance covers, so check with your accountant how it applies to your spending.

For South Hampshire manufacturers, marine engineers and defence supply chain firms, this is about the plant and equipment that goes into a building as much as the building itself.

1 April 2027: the busiest date

Several changes start together on 1 April 2027:

• Writing-down allowance falls. The main rate writing-down allowance drops two points to 12% for Corporation Tax (para 6.251). For companies with large existing pools of plant, annual relief on that pool slows.
• Business rates relief for retail, hospitality and leisure. The 100% Small Business Rates Relief threshold rises to a rateable value of £18,000, with tapered relief up to £21,000, for qualifying RHL properties in England (para 6.190). Pubs, social clubs and most live music venues see relief rise from 15% to 35% (para 6.189).
• First year of the CPI cap. Bill increases for qualifying RHL properties are "capped by CPI inflation in 2027-28 and 2028-29" (para 6.191). The cap does not cover increases in rateable value from improvements.
• Wages. The National Living Wage rises 3.9% to £13.21 an hour (para 6.128).
• Energy for manufacturers. The British Industrial Competitiveness Scheme will support over 10,000 eligible manufacturers in Great Britain, "cutting their electricity bills by up to 25%" (para 4.24).

For a Southsea café, a Cosham shop or a Gosport pub, the rates changes may outweigh everything else. For a Havant or Fareham manufacturer, energy and wages will matter more.

6 April 2027: personal tax changes

• Business Asset Disposal Relief (BADR). The lifetime limit on gains eligible for the 18% BADR rate halves "from £1 million to £500,000", applying to "disposals made from 6 April 2027" (para 6.261). The Treasury says "three-quarters of BADR claimants will still receive relief on their entire gain" (para 2.53).
• Tax on property income. Income tax rates on property income become 24%, 44% and 49% across England, Wales and Northern Ireland "from 6 April 2027" (para 6.246).
• Writing-down allowance for unincorporated businesses. The 12% main rate applies for Income Tax from this date (para 6.251).
• Trading Allowance. Rises from £1,000 to £3,000 (para 6.254).

October 2027: online marketplaces collect VAT

Online marketplaces become responsible for collecting VAT on sales by UK VAT-registered businesses and other UK sellers above £90,000 a year per platform (para 6.154). The Treasury says the money raised "will be reinvested into the high street through reductions to business rates" (para 2.44).

April 2028 onwards

• 1 April 2028: the Climate Change Levy main rate on electricity is frozen and Carbon Price Support is removed (para 4.25).
• April 2028: a modernised framework for company distributions, which the Treasury says will "protect capital treatment for genuine changes in ownership, including families passing down their business" (para 6.181). Draft legislation is due in 2027.
• 2028-29: the second and final year of the CPI cap on RHL business rates bills (para 6.191).
• Q3 2028: inflation forecast to return to the 2% target (para 1.37).

How to time a premises purchase or refinance

If you hold, or plan to hold, the premises personally

Many owner-managers buy the building in their own name and let it to their company. That rent is property income, so from 6 April 2027 it is taxed at the new property income rates of 24%, 44% or 49% (para 6.246).

Illustrative example. A Portsmouth engineering firm's director owns its unit personally and charges the company rent. After allowable expenses, including mortgage interest, the taxable rental profit is £30,000 a year, all taxed at the higher rate. At 40% the tax is £12,000; at the 44% property higher rate it is £13,200, an increase of £1,200 a year. The figures are illustrative only.

The change does not apply to companies, which pay corporation tax rather than income tax. Whether to hold premises personally, in the trading company or in a separate company is a tax and legal decision with many moving parts, including the BADR position on a future sale. Lenders can usually accommodate any of these structures, but the choice affects whose accounts they assess and who gives guarantees, so settle it before you apply.

If you plan to sell the business within a few years

The BADR limit change applies by the date of disposal. If a sale of the business, with or without its premises, is likely in the near future, ask your adviser whether the timing interacts with the 6 April 2027 date. Do not let a tax date push you into a sale that is not ready.

If you are fitting out or buying plant

Qualifying main rate expenditure on or after 1 January 2027 gets the 50% first-year allowance (para 6.251). If a purchase includes significant new plant, the order of completion and spending could affect relief. That is a question for your accountant before contracts are signed.

If your existing mortgage is due for renewal

The Budget gives no forecast for Bank Rate. It says inflation was 3.5% in September, will peak at 3.8% in the first quarter of 2027 and return to 2% by the third quarter of 2028 (paras 1.13 and 1.37), and that "Higher inflation has led to higher interest rate expectations" (para 1.15). Nobody can tell you from the Budget what rates will do.

What you can control is preparation. Start a refinance three to six months before your fixed rate or term ends, have up-to-date accounts ready, and check any early repayment charges before deciding whether to move early. Ask lenders to show you fixed and variable options side by side.

What to do now

1. Mark the four key dates (1 January, 1 April, 6 April and October 2027) against any purchase, sale, fit-out or refinance you have planned.
2. Confirm who owns the premises and how rent is paid, then ask your accountant what the property income changes mean for you.
3. Check your rateable value and whether your property counts as retail, hospitality or leisure.
4. Rebuild your 2027-28 forecast with the wage rise, any rates change and your energy contract position, since lenders will assess affordability on realistic costs.
5. Start refinance conversations early if your current deal ends during 2027.

Key dates

• 29 October 2026: SDLT group relief change
• 1 January 2027: 50% main rate first-year allowance
• 1 April 2027: RHL rates relief and CPI cap begin; National Living Wage £13.21; 12% writing-down allowance (Corporation Tax)
• 6 April 2027: BADR limit £500,000; property income tax at 24%, 44% and 49%
• October 2027: online marketplace VAT collection
• 2028-29: final year of the RHL CPI cap

Brought to you by Business Mortgages Broker

This guide was written by Business Mortgages Broker, which arranges owner-occupier business mortgages for UK trading companies. Founder Matt Lenzie has 25 years in financial services, raising debt and equity, and has arranged around £400m of property finance. For businesses buying or refinancing premises in the city and across South Hampshire, see the Business Mortgages Broker Portsmouth page.

Source: HM Treasury, Budget 2026 (HC 726), 28 October 2026. This article is general information, not tax or financial advice.