28/10/2026
The Chancellor has delivered the Autumn 2026 Budget.
Below we outline the key announcements.
1. Property income tax
Landlords, take note. From 6 April 2027, tax on property income rises by 2 percentage points, to 24% basic, 44% higher and 49% additional rate. This applies in England, Wales and Northern Ireland. If you have rental income, now is a good time to review how your property income is held.
2. Savings income tax
Savings income will be taxed more from 6 April 2027. Rates rise by 2 points to 24%, 44% and 49% across the UK. This matters most if your interest is above your personal savings allowance, including directors holding cash personally. Your £20,000 cash ISA allowance stays the same.
3. Pension Tax Allowance
Good news for pensioners. From 6 April 2027 to 5 April 2030, a new Pension Tax Allowance means pensioners whose total income is no more than the full new State Pension won’t pay income tax on it. The allowance is tapered for incomes just above that level.
4. Trading allowance
Got a small side income? From 6 April 2027 the trading allowance triples from £1,000 to £3,000 a year, covering trading and miscellaneous income. Some people may no longer need to file a tax return.
5. Tax-free mileage
Tax-free mileage rates have been permanently increased to 55p a mile for the first 10,000 miles and 35p a mile after. This applies to employees and the self-employed who use their own car or van for work.
6. Business Asset Disposal Relief
Planning to sell your business or retire? From 6 April 2027 the Business Asset Disposal Relief lifetime limit halves from £1m to £500,000, though the 18% rate stays. Timing could make a real difference.
7. Founders’ Relief
There’s a new Founders’ Relief from 6 April 2027. It gives a 10% Capital Gains Tax rate on up to £10m of lifetime gains for qualifying founders of high-growth, innovative companies. The detailed rules are still under consultation.
8. Capital allowances
Investing in equipment? The main rate first-year allowance rises to 50% for spending from 1 January 2027. The main rate writing down allowance falls from 18% to 12% from April 2027. That means bigger relief upfront but slower relief afterwards, so the timing of your purchases matters.
9. National Living Wage
Employers, the minimum wage rates rise by 3.9% from 1 April 2027:
21 and over: £13.21 an hour
18 to 20: £11.27 an hour
16 to 17 and apprentices: £8.31 an hour
Budget for the rise now. Our payroll team can help you prepare.
10. Company cars and vans
Company car tax rates go up 1 point in all bands in 2030-31, and the rate for zero-emission cars rises from 9% to 10%. Van benefit and fuel benefit charges rise by CPI from 6 April 2027.
11. Selling online
Sell on Amazon, eBay or similar sites? From October 2027, online marketplaces will collect VAT on sales by UK VAT-registered sellers. They will also collect it for other UK businesses with £90,000+ of sales per platform.
12. Business rates (England)
Changes for retail, hospitality and leisure businesses from 1 April 2027:
Small Business Rates Relief: 100% relief up to £18,000 rateable value, tapering to £21,000
Pubs, social clubs and music venues: relief up from 15% to 35%
Other bill increases capped at CPI for two years
V**e shops lose this relief
13. Paying HMRC from April 2029
How you pay HMRC is changing from April 2029:
Self assessment payers on account will pay more often during the year.
Direct debit becomes mandatory for VAT and PAYE
VAT invoices must be issued electronically from 1 April 2029
Your bookkeeping software will need to support e-invoicing.
If you have questions about anything in the budget, get in touch with the team on 01332 981920 or [email protected].
