On 27 October 2026, the UK Government confirmed the Autumn Budget 2026 will be delivered by the Chancellor on 28 October 2026. This pre-Budget briefing outlines the key areas expected to be addressed: corporation tax roadmap post-Pillar Two, MTD ITSA expansion timeline, capital gains tax reform, inheritance tax thresholds, and green taxation measures. The Office for Budget Responsibility (OBR) will publish its Economic and Fiscal Outlook alongside the Budget. Professional bodies including Chartered Accountants Ireland have submitted representations urging clarity on MTD ITSA penalties, close company reporting, and NI-specific measures.
Key Takeaways
- Corporation Tax and Pillar Two Alignment: The Budget is expected to confirm the 25% main rate and introduce the Domestic Minimum Top-up Tax (DMTT) to align with OECD Pillar Two GloBE rules. The DMTT ensures UK profits are taxed at least at 15% effective rate, with top-up tax collected domestically rather than by foreign jurisdictions.
- MTD ITSA Timeline and Penalties: Representations call for a confirmed extension of the penalty soft landing and clarification on the £30,000 threshold for mandatory participation from April 2027. The abandonment of close company reporting is widely anticipated.
- Green Taxation and Capital Allowances: Enhanced capital allowances for zero-emission vehicles and energy-efficient plant are expected. A potential Carbon Border Adjustment Mechanism (CBAM) consultation launch may be announced, aligning with EU CBAM transitional phase.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement