New Founder Relief and rising tax on property income in the spotlight at Saffery’s Bournemouth Budget briefing
Around 60 local business owners and leaders joined accountancy and advisory firm Saffery at The Village Hotel in Bournemouth to hear what Chancellor John Healey’s first Budget means for them: with a new capital gains tax relief for company founders, a halving of Business Asset Disposal Relief and further rises in tax on property and savings income prompting the most discussion.
Saffery’s annual Budget seminar, held just two days after the Chancellor’s statement, was presented by Partner David Chismon and Corporate Tax Director Richard Meller of the firm’s Bournemouth office, who took guests through the measures that matter most to business owners, investors and families.
The headline announcement for entrepreneurs was a new Founder Relief. From 6 April 2027, qualifying disposals will be taxed at 10% up to a lifetime cap of £10m per individual. The conditions are demanding: founders must have held at least 25% of the company when it began trading and owned their shares for at least five years, while the company must have turnover of £10m, at least 15 full-time equivalent staff and meet two of three innovation tests based on turnover growth, headcount growth or R&D spending. The proposals are out for consultation until 30 November, so the detail could still change.
At the same time, the lifetime limit for Business Asset Disposal Relief will be halved from £1m to £500,000 from 6 April 2027, meaning the relief will be worth £30,000 per person over their lifetime.
Landlords and savers face a further two percentage point rise in income tax on property and savings income, building on increases announced in last year’s Budget and taking rates to 24%, 44% and 49%.
Other measures covered on the morning included an increase in first year capital allowances from 40% to 50% from January 2027, offset by a cut in writing down allowances from 14% to 12% from April; the rebranding of CSOP share options as “EMI2”, with the option limit doubled to £120,000; confirmation that the Cash ISA limit will stay at £20,000 rather than being cut to £12,000; and an increase in tax-free mileage for cars travelling more than 10,000 miles a year from 25p to 35p per mile.
David and Richard also highlighted significant changes to how tax is collected and policed. Around three million people who currently pay income tax through payments on account will move to in-year payments from the 2029/30 tax year, while HMRC is building a connected view of wealthier taxpayers, those with income over £200,000 or assets over £2m, using data and AI, and plans to have 400 additional specialists in place by 2030.
David Chismon, Partner at Saffery, said: “This was very much a breathing space Budget; no frills, no big interventions and nothing to unsettle the markets. To borrow a nautical phrase, the Chancellor is steadying the ship rather than changing course. But the detail really matters. The new Founder Relief is a genuinely positive step, with potential savings of up to £1.4m for qualifying founders, but the conditions are tough and many entrepreneurs simply won’t meet them. Combined with the halving of BADR, that makes exit planning more important than ever.”
He added: “With HMRC investing heavily in data and AI to build a joined-up picture of individuals, families, trusts and companies, business owners need to make sure their reporting, registrations and records are consistent across every entity they’re involved with. It was great to see such a strong turnout this morning, and the quality of questions showed just how engaged the local business community is.”
The presentation was followed by a lively Q&A session, with conversations continuing well into the networking that closed the morning. Those unable to attend in person were able to follow Saffery’s Budget update webinar, presented by Adam Kay. Businesses and individuals who would like to discuss how the Budget affects them can contact Saffery’s Bournemouth office.