The Chancellor delivered the Autumn Budget on Wednesday 28 October 2026. There were no changes to the main rates of income tax, National Insurance, corporation tax or VAT. The biggest changes are for landlords, savers and business owners planning to sell. Most take effect from April 2027.
Landlords and savers
Income tax on property income and savings income will be 4 percentage points higher than today from 6 April 2027. The November 2025 Budget announced a 2-point rise; this Budget adds 2 more.
| 2026/27 | From 6 April 2027 | |
|---|---|---|
| Basic rate | 20% | 24% |
| Higher rate | 40% | 44% |
| Additional rate | 45% | 49% |
The property income change applies in England, Wales and Northern Ireland. The savings income change applies across the UK.
For an individual landlord making £20,000 of rental profit as a higher-rate taxpayer, that is £800 more tax a year. Companies pay corporation tax on rental profit instead, so the gap between owning personally and through a company gets wider. Moving property into a company has its own costs, including stamp duty and capital gains tax, so it needs working through case by case.
From April 2028, homes worth £2 million or more will pay a new annual council tax surcharge, starting at £2,500.
Sole traders and side income
The trading allowance rises from £1,000 to £3,000 from 6 April 2027. If your gross income from a small trade or side business is £3,000 or less, you won’t need to report it or pay tax on it. If it’s more, you can deduct £3,000 instead of your actual expenses where that gives a better result.
The mileage rate of 55p a mile for the first 10,000 business miles is now permanent. Above 10,000 miles, the rate rises from 25p to 35p from 6 April 2027.
From April 2029, Self Assessment taxpayers who make payments on account will have to pay more regularly during the year, with the option to pay through PAYE. Details are to follow.
Selling a business
Business Asset Disposal Relief is cut back. The lifetime limit falls from £1 million to £500,000 for disposals from 6 April 2027. Gains within the limit are taxed at 18%.
A new Founders’ Relief starts on the same date. It gives a 10% rate on up to £10 million of lifetime gains for founders and early investors in qualifying high-growth companies. The conditions are stricter than for Business Asset Disposal Relief.
If you are thinking of selling a business in the next 18 months, the timing of the sale now matters. Talk to us before you agree terms.
Companies
- The main rate of corporation tax stays at 25%, with the 19% small profits rate unchanged.
- The first-year allowance for main-rate plant and machinery rises from 40% to 50% from 1 January 2027.
- The writing-down allowance falls from 14% to 12% from 1 April 2027 for companies (6 April 2027 for unincorporated businesses).
- The Annual Investment Allowance of £1 million still gives full relief on most equipment in the year you buy it.
- CSOP becomes EMI2, with the option limit per employee doubled to £120,000 from 6 April 2027.
- The R&D claim notification form is scrapped from 1 April 2027.
Employers
- The National Living Wage rises from £12.71 to £13.21 an hour from 1 April 2027.
- The rate for 18 to 20-year-olds rises from £10.85 to £11.27 an hour.
- Already announced: payrolling benefits in kind becomes mandatory from April 2027.
Savings, ISAs and pensions
- The planned cut to the cash ISA limit for under-65s has been scrapped. You can still put up to £20,000 a year into a cash ISA.
- A new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029.
- Pensioners whose income is no more than the full new State Pension will not pay small amounts of tax from April 2027 to April 2030.
- Unused pensions still come into inheritance tax from 6 April 2027, as announced last year.
What hasn’t changed
- Income tax rates on earnings, and the personal allowance of £12,570, which stays frozen until 2031
- Dividend tax rates (10.75% and 35.75% from April 2026)
- Main capital gains tax rates
- The inheritance tax nil-rate band, the seven-year rule for gifts, and the residence nil-rate band
- The VAT registration threshold of £90,000
- Making Tax Digital for Income Tax, which still applies from April 2027 for qualifying income over £30,000
What to do now
- Landlords: check how much the April 2027 change costs you, and whether a company structure is worth reviewing.
- Business owners planning a sale: look at whether a sale before 6 April 2027 makes sense under the current £1 million limit.
- Companies buying equipment: plan the timing of large purchases around the 1 January 2027 change.
- Employers: budget for the April 2027 wage rises.
Our tax advice page covers how we help with planning. To talk through how the Budget affects you, book a free 15-minute call.
For how the changes affect you, see our personal tax, Corporation Tax and Capital Gains Tax services.
Based on the Budget announcements of 28 October 2026. These are proposals until the Finance Bill becomes law, and details may change. This article is general information, not personal advice.
