October could be an important month for Mid Ulster businesses. Within three weeks, two governments will set out their plans for taxation and public spending. Budget 2027 in Dublin is scheduled for 6 October, followed by the UK Government’s Autumn Budget on 28 October.
For businesses operating across the border, both matter. Many local firms trade in both jurisdictions, employ staff on either side of the border, own assets in different tax systems or have customers and suppliers in both markets. A change in Dublin can therefore have implications for a business in Dungannon just as decisions made in Westminster can.
Dublin: Watch for changes affecting competitiveness
The Irish Government enters Budget 2027 with strong corporation tax receipts, but also growing pressure on public spending.
For Mid Ulster businesses with operations or customers south of the border, changes to investment incentives, employment supports, or SME tax measures could influence investment and expansion decisions.
The key question will be whether Ireland continues to support its competitiveness while meeting wider demands on the public finances.
Westminster: Look beyond headline tax rates
The UK Government faces tighter fiscal conditions and pressure to raise revenue while funding public services.
Capital Gains Tax (CGT) is likely to attract significant attention, with continued speculation about changes to rates. But for business owners, the headline CGT rate may not be the only, or even the most important, issue to watch.
Changes to reliefs and exemptions can have a major impact without making the same headlines as a tax rate increase.
Three areas deserve particular attention:
Business Asset Disposal Relief
Business Asset Disposal Relief can significantly reduce the tax paid when qualifying business owners sell their company.
But the relief has already been restricted. Its lifetime limit has fallen from £10 million to £1 million.
Further changes to eligibility or the level of relief could materially affect entrepreneurs planning an eventual sale or exit. For owners who have spent decades building a business, this could have a significant impact on the value they ultimately retain.
Succession reliefs
Succession planning is particularly important across Mid Ulster, where family-owned businesses are common in manufacturing, engineering, construction, transport and agriculture.
Many owners are now considering retirement and passing their businesses to the next generation. Recent changes to Agricultural Property Relief and Business Property Relief have shown that long-standing reliefs can be changed.
No further changes have been announced, but business owners should consider how dependent their succession plans are on existing tax reliefs.
The CGT uplift on death
Another area that could have significant consequences is the CGT treatment of assets on death.
Under current rules, assets generally receive a CGT uplift on death, meaning gains that arose during the deceased’s lifetime are generally not subject to CGT at that point.
There has been ongoing debate around whether this treatment should change. No such change has been announced, but any future reform could have significant implications for family businesses, farms and investment portfolios.
Why this matters now
For many business owners, the biggest tax bill they face may not arise from running their business. It may arise when they sell it, retire or pass it to the next generation. That makes the October Budgets worth watching closely.
The important announcements may not be the headline tax rates. They could be buried in the detail: changes to reliefs, eligibility criteria, thresholds or the treatment of assets on death. For Mid Ulster business owners, the message is simple: don’t just ask whether tax rates are changing. Look at whether the rules that support business sales, retirement and succession planning are changing too.
Those details could have a lasting impact on the value of a business and the wealth that can ultimately be passed on.
Following both the Irish Budget 2027 and UK Autumn Budget 2026 announcements, our teams will be providing key updates, highlights and ensuring that you understand what’s changing and how that will affect both individuals and businesses. If you have any queries about any of the potential changes we’ve discussed, please do not hesitate to get in contact with Malachy McLernon, or your usual AAB contact.
We’ll also be covering all the budget changes over on our LinkedIn, follow us to keep up to date.
This article was featured in the Irish News.
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