Key changes for creative and media businesses – Autumn Budget 2026

The Autumn Budget focused on supporting growth, entrepreneurship and investment.
Key changes include increasing the trading allowance and self-assessment reporting threshold from £1,000 to £3,000 from 6 April 2027, introducing a new CGT Founders’ Relief from April 2027, reducing the Business Asset Disposal Relief (BADR) lifetime limit from £1 million to £500,000, and enhancing the EMI share option regime. The Government has also confirmed the continuation of full expensing to encourage business investment.

For creative and media businesses, these changes are particularly relevant when considering talent retention, investment in technology and equipment, access to skilled workers and future exit planning.

Support for founders, entrepreneurs and freelancers

The trading allowance and self-assessment reporting threshold will increase from £1,000 to £3,000 from 6 April 2027. This will make it easier for freelancers, photographers, content creators and influencers to earn income from side projects or new ventures with reduced reporting requirements.

From 6 April 2027, founders of qualifying high-growth and innovative businesses will be able to benefit from a 10% capital gains tax rate on up to £10 million of lifetime gains, subject to meeting the relevant qualifying conditions.

At the same time, the lifetime limit for Business Asset Disposal Relief (BADR) will be reduced from £1 million to £500,000. For owners of successful creative agencies, production companies and digital businesses considering an eventual sale, this could increase the tax payable on future disposals.

My recommendation would be for business owners to review their long term succession and exit plans sooner rather than later, particularly where the value of the business is expected to continue growing.

Attracting and retaining creative talent

Talent remains one of the biggest challenges facing the sector, with businesses competing for designers, developers, producers, editors and other specialist roles while trying to manage cash flow and rising costs.

The Budget includes several enhancements to Enterprise Management Incentives (EMI) and Company Share Option Plans (CSOP), including increased flexibility and simplified administration from April 2027. These changes make share schemes an even more attractive tool for recruiting and retaining key employees.

For growing creative businesses, offering employees a stake in future success can be an attractive alternative to increasing salaries and bonus arrangements.

The government has also announced reforms relating to skilled workers, including an income tax exemption for employer paid certificate of sponsorship fees and immigration skills charges. This may help businesses recruiting specialist overseas talent in areas such as gaming, animation and visual effects.

Investment in technology, production and innovation

The continuation of full expensing is positive news for businesses investing in production equipment, studio technology, AI tools and specialist software who can continue to benefit from generous tax relief on qualifying expenditure.

The Budget also announced technical amendments to the corporate interest restriction rules from 1 January 2027. Audio Visual Expenditure Credits (AVEC) and Video Games Expenditure Credits (VGEC) will be excluded from the calculation of taxable earnings for CIR purposes. This reinforces the Government’s commitment to the UK’s film, television and gaming sectors.

Employment

Workers aged 18 to 20 will receive a 3.9% pay increase, matching the increase for workers aged 21 and over. Businesses employing apprentices, junior creatives or production assistants should review budgets and pricing models to account for higher payroll costs.

Our view

While few measures will affect day to day operations immediately, the Budget supports key challenges facing creative businesses, including talent retention, growth and investment.

The enhanced EMI regime is likely to be particularly valuable for ambitious businesses looking to scale, while continued support for the film, television and gaming industries is welcome. On the other hand, founders considering a future exit should take note of the reduction in the BADR lifetime limit and factor this into their long term planning.

Businesses should use the coming months to review their employee reward structures, planned investment in technology and equipment, and future succession plans to ensure they make the most of the opportunities available under the new rules.

If the Budget has raised any questions for you, book your place on our question time webinar this Friday at 9:30am. Alternatively, if you would like any further information or guidance on this topic, get in touch with your usual Kreston Reeves contact or contact us here.