Budget 2025 fact sheet: Tax support for businesses

This budget is backing British business through the tax system

• Permanent lower business rates tax rates for over 750,000 retail, hospitality and leisure properties, worth nearly £900m a year from April 2026.
• A £4.3 billion business rates support package will cap business rates bill increases for sectors hit hardest by revaluations from April 2026.
• Film studios: we will maintain 40% business rates relief for film studios for ten years until 2034
• Ending exploitation of the Tour Operators’ Margin Scheme by a small number of private hire vehicle operators ensuring fairness for all taxi drivers.
• Ending the low value import relief: Closing the customs arrangements that allowed some online retailers to import their goods duty free, ensuring all businesses pay equivalent tariffs.
• Gambling tax: No changes for in-person betting or horse-racing, and we will abolish bingo duty from April 2026 – recognising the cultural value these provide for millions across the country
• Fuel duty: Extending the temporary 5p fuel duty cut for a further five months until the end of August 2026 to keep van and lorry journeys affordable. Heavy Goods Vehicles are set to save £843 next year.
• Pro-growth: Bringing in a permanent 40% First Year Allowance for main rate assets, giving businesses a strong incentive to invest in the future. We are also keeping the £1 million Annual Investment Allowance offers to offer immediate tax relief on plant and machinery equipment.
• Electric Vehicle support: £2bn support for the EV transition and 10 year 100% business rates relief for eligible changepoints and EV-only forecourts, cutting costs for businesses. Also a one year extension to the 100% first year allowances for businesses buying zero emission cars and chargepoint infrastructure to April 2027.

Are you raising taxes on businesses overall?

No. We’re maintaining the lowest corporation tax rate in the G7 (25%) and introducing targeted reliefs for SMEs and high street firms, ensuring the system is fair and supports local businesses.

What support is available for fast-growing firms and entrepreneurs?

We’re making it easier for scale-ups to attract investment and expand – doubling eligibility for enterprise tax incentives, introducing a three-year stamp duty exemption for new UK listings, and maintaining a £1 million Annual Investment Allowance.

Entrepreneurs and Fast-Growing Firms

• Enterprise tax incentives: Doubling eligibility for enterprise tax incentives supporting scale ups to attract more investment and talent as they grow.
• UK Listing Relief: A three-year stamp duty reserve tax exemption for newly listed firms boosting liquidity and giving scaling firms a compelling reason to choose the UK.
• ISA reform and more support to help people invest will drive around £3 billion of retail investment towards UK-listed companies, boosting the competitiveness of UK stock exchanges.

Overall Financial Effect

• The net impact is a more level playing field, with measures designed to reduce costs for local businesses, unlock capital for growth and modernise the tax system to encourage investment.
• This budget delivers for the high street SMEs, scale-ups, and firms investing in infrastructure or listing in the UK stand to gain through lower operating costs, targeted tax reliefs, and increased funding opportunities.

How to access support

Businesses can check for tax incentives through GOV.UK.

• Check your eligibility for business rates relief at GOV.UK from January 2025
• Review enterprise tax incentive criteria if you’re a fast-growing firm
• More information: Business rates relief, Tax incentives, ISA reform, HMRC Contact Details

source: GOV