Ireland’s 2027 Budget and the UK Autumn Budget: What Cross-Border Businesses Should Watch

Ireland’s Budget 2027 is behind us and, while it may not have delivered everything on the wishlist, there were some welcome measures for SMEs.

However, there’s still one important date ahead: the UK’s Autumn Budget on October 28th. Only once both Governments have shown their hand will businesses be able to assess the full impact on cross-border growth, investment and competitiveness, across  Ireland, North and South of the Border.

For those businesses operating across  both tax jurisdictions, there will be plenty to unpack once the results are in.

A different kind of Budget?

This will be the first Budget under Prime Minister Andy Burnham and the first for John Healey as Chancellor. Both have only been in their current roles since July, so there’s less of a track record to draw on when predicting what this Budget might bring.

What we do know is that the Government has already set some parameters. It has committed not to raise the main rates of Income Tax, National Insurance or VAT. Together, these taxes account for almost 60% of UK tax revenue, so the commitment rules out increases to some of the most significant headline rates, leaving the Chancellor to consider other ways of raising revenue.

At the same time, the Government wants to encourage growth and spread investment more widely across the UK and Northern Ireland, rather than concentrating it on London and the South East.

That leaves the Chancellor with a difficult balance to strike: finding ways to raise revenue without undermining the confidence to invest, grow and take risks. How the Government approaches that balance will be particularly important for SMEs and entrepreneurs that operate cross-border.

Capital Gains Tax and business reliefs

Ireland’s 2027 Budget reduced the standard CGT rate from 33% to 31%, a welcome move for investors and entrepreneurs, even if the rate remains relatively high. It also left existing reliefs for entrepreneurs and business owners largely intact, as well as committing a significant €1 billion to supporting the growth of Irish businesses globally.

Attention now turns to what will emerge from the UK budget.

Business Asset Disposal Relief, which can reduce the CGT payable when qualifying business owners sell all or part of their business, increased to 18% in April 2026. Any further changes to CGT or the reliefs available could therefore have implications for business owners considering a sale, succession or future investment.

For those operating across both tax jurisdictions, comparing tax rates won’t tell the whole story. Ireland’s 12.5% Corporation Tax rate for trading income remains much lower than the UK’s 25% main rate, while CGT rates and the reliefs available also differ. Tax residence, eligibility for reliefs and the structure of a transaction can all affect the final tax position.

Taken together, these differences can influence decisions around where to invest, grow or eventually sell a business. There is also a bigger question around what the UK’s tax policy signals to entrepreneurs and investors, and whether it gives people the confidence to invest, take risks and build businesses over the longer term.

Inheritance Tax and pensions

We already know one significant UK change is coming. From April 2027, most unused pension funds and pension death benefits will be brought within the scope of Inheritance Tax (IHT).

For business owners who have built up significant pension savings alongside their business assets, the change could have important implications for how they plan to pass wealth to the next generation.

The treatment of pensions passed to beneficiaries differs between Ireland and the UK and can depend on how the pension is structured and who receives it. For anyone with UK pensions and cross-border succession plans, the changes make it worth reviewing existing arrangements ahead of April 2027.

Could the non-dom rules change again?

Another area to watch is the tax treatment of individuals coming to, or returning to, the UK. The previous non-dom regime was replaced in April 2025 with a residence-based system, including four-year relief on qualifying foreign income and gains for eligible new UK residents.

With a new Government now setting its tax agenda, could the Autumn Budget bring further changes? Any shift could have implications for individuals with assets, income or business interests across Ireland and the UK, particularly when it comes to residence, investment and longer-term tax planning.

What about cross-border tax administration?

The UK has been considering ways to simplify how businesses access relief from withholding tax on interest paid overseas.

For companies with cross-border financing arrangements, the current process can create additional administration and, in some cases, cash flow delays while relief is being claimed. Any simplification would therefore be a welcome practical improvement.

The Autumn Budget isn’t the only change cross-border businesses need to prepare for. Making Tax Digital in the UK and the EU’s VAT in a Digital Age reforms are continuing to change tax reporting requirements.

What should cross-border businesses take from all of this?

There are still plenty of unknowns ahead of 28 October. What we would welcome is a Budget that supports the Government’s growth ambitions while giving SMEs and entrepreneurs the confidence to invest, expand and plan for the future.

For cross-border businesses, there’s no need to put plans on hold while we wait. But if a sale, succession, investment or financing decision is on the horizon, it’s worth understanding where the Autumn Budget could change the picture.

We’ll be following the announcements closely and considering what they mean for businesses operating across Ireland and the UK. We are also running a ‘Cross Border Breakfast with a Difference’ event on Wednesday 4 November. This unique event will bring together relevant experts to share their thoughts and insights into the opportunities and challenges of cross border businesses. Register for the event here. Keep an eye on our Irish Budget hub for follow up content.

If you operate a cross border business and have questions about how the Irish and UK Autumn Budget could affect your business or tax position, reach out to Siobhan McCreesh, or your usual AAB contact.