For entrepreneurial and growth businesses across the Technology, Media, Marketing & Advertising, and Retail & eCommerce sectors, this year’s Autumn Budget offers a largely positive picture.
While a number of tax changes were announced, the overall direction for entrepreneurial businesses is encouraging. Continued support for R&D, enhanced employee share incentives, a new relief for founders and additional backing for female entrepreneurs all reinforce the Government’s focus on innovation and growth.
New Founders’ Relief puts entrepreneurship in the spotlight
The government announced Founders’ Relief, a new Capital Gains Tax (CGT) relief for founders of and significant early investors in high-growth, innovative UK companies.
The proposed criteria are restrictive. They include a 25% original shareholding, at least five years of ownership and specific company growth, employment or R&D tests.
The relief will offer a 10% CGT rate on qualifying share disposals, subject to a lifetime limit of £10 million in gains per individual. It aims to encourage the creation of successful UK businesses with the potential to generate more jobs, growth and wider economic benefits.
EMI remains intact, with EMI 2 on the horizon
The Chancellor announced EMI 2 – a rebrand of the current Company Share Option Plan.
From 6 April 2027, the individual option limit under CSOP/EMI2 will double from £60,000 to £120,000, and the maximum exercise period will increase from 10 to 15 years. EMI options will no longer count towards the EMI2 limit meaning that eligible employees will therefore be able to use both schemes’ limits in full, giving businesses more flexibility when designing longer-term employee incentives.
For EMI options, the exercise window for individuals after a disqualifying event will be extended from 90 to 180 days. The requirement to separately notify a grant of an EMI option is also to be replaced by reporting in the end-of-year return.
These announcements signal a clear commitment to strengthening employee ownership and supporting ambitious businesses as they scale. For businesses competing for specialist talent across technology, media and digital sectors, this could prove to be one of the most significant growth measures announced in the Budget.
R&D relief remains a key growth driver
The Budget did not introduce any significant changes to R&D tax relief but simplified the claims process, providing welcome certainty for businesses investing in innovation. For companies developing software, AI solutions, digital platforms, data analytics tools, eCommerce technologies or new products and services, R&D relief remains an important mechanism for supporting investment and improving cash flow.
At a time when many businesses are balancing growth ambitions against economic uncertainty, stability in the R&D landscape will be welcomed by businesses looking to continue investing in innovation and technology-led transformation.
New support for female founders
One of the most encouraging announcements for the entrepreneurial ecosystem was the introduction of a new scale-up programme for female founders. The initiative is intended to help women-led businesses access the support, networks and funding they need to accelerate growth.
Alongside this, the British Business Bank will double its commitments to women-led businesses and investment funds to £200 million, helping to address the long-standing funding gap faced by female entrepreneurs. While further details are yet to be published, the measures demonstrate a clear commitment to improving access to capital and supporting the next generation of high-growth businesses.
For the Technology, Media, Marketing and eCommerce sectors, where female entrepreneurship continues to grow rapidly, these initiatives could create valuable opportunities for scaling businesses seeking external investment.
Private client changes create challenges for founders
While the business-focused announcements are largely positive, founders and business owners will be paying close attention to several private client tax changes.
Most notably, the Chancellor confirmed that the lifetime limit for Business Asset Disposal Relief (BADR) will be halved, potentially increasing the tax payable on future business exits.
Entrepreneurs considering a sale, succession event or management buyout may want to review their plans and assess what the changes could mean for their long-term wealth strategy.
The Government has also announced higher tax rates on savings income and property income from April 2027. Higher-rate taxpayers will face rates of up to 44%, while additional-rate taxpayers could pay as much as 49% on these income streams.
In addition, the continued freeze on income tax thresholds until 2031 means many founders, shareholders and senior executives are likely to experience an increasing tax burden through fiscal drag over the coming years.
A boost for freelancers, creators and side businesses
One welcome measure for the wider creator and entrepreneurial economy is the increase in the Trading Allowance from £1,000 to £3,000 from April 2027. The corresponding increase in the reporting threshold should reduce administration for freelancers, consultants, creators and individuals generating income through side ventures.
This is likely to be particularly relevant across the creative industries, digital marketing sector and growing creator economy, where portfolio careers and multiple income streams are increasingly common.
Looking ahead
Overall, the Autumn Budget 2026 delivers some positive signals for innovative and high-growth businesses. The introduction of Founders’ relief, continued support for R&D, the planned introduction of EMI 2 and the new initiatives aimed at supporting female founders all point to a Government keen to back entrepreneurship and innovation.
However, alongside these growth-focused measures, founders and business owners face a more challenging personal tax environment. As a result, many will be considering not only how to fund and scale their businesses, but also how to structure, protect and ultimately realise the value they create.
