Autumn Budget 2026: What It Means for You

Published: 16:22 hours | 28 October 2026 | Holden Associates

The Autumn Budget 2026 was delivered by Chancellor John Healey on 28 October 2026, bringing a range of tax announcements and financial changes that could affect businesses, company directors, sole traders, partnerships, landlords and individuals across the UK.

Although the headline rates of Income Tax on earnings, National Insurance and VAT remain unchanged, there are important changes to Capital Gains Tax reliefs, business investment allowances, rental income, savings, employment costs and tax reporting requirements.

Some announcements may provide welcome opportunities, while others could mean higher tax bills or additional costs in the years ahead.

But what does the Autumn Budget 2026 actually mean for you?

At Holden Associates, we understand that tax announcements can be difficult to navigate. That’s why we’ve put together this straightforward guide to the main changes, when they’re expected to take effect and what you may need to consider.

Whether you run a limited company, are self-employed, own rental property, employ staff or simply want to understand how the Budget could affect your personal finances, we’ve broken down the announcements into clear, practical sections.

Autumn Budget 2026 at a glance

Here are some of the announcements most relevant to our clients:

• Income Tax, National Insurance and VAT: No general increase in the headline rates, although other tax changes will affect many taxpayers.
• Landlords and savers: Income Tax rates on property and savings income are set to rise to 24%, 44% and 49% from 6 April 2027.
• Business owners: The lifetime Business Asset Disposal Relief limit is set to fall from £1 million to £500,000 from 6 April 2027.
• Entrepreneurs: A proposed new Founders’ Relief could offer qualifying founders a 10% Capital Gains Tax rate on up to £10 million of lifetime gains.
• Business investment: Changes to capital allowances include a 50% main rate first-year allowance and a reduction in the main writing-down allowance.
• Sole traders: The Trading Allowance will rise from £1,000 to £3,000 from April 2027.
• Employers: The National Living Wage will increase to £13.21 per hour from April 2027.
• Business rates: Additional relief is planned for qualifying retail, hospitality and leisure properties in England.
• Online sellers: Marketplaces will take greater responsibility for collecting VAT on certain UK business sales.
• ISAs: The cash ISA subscription limit will remain at £20,000.
• Making Tax Digital: Some taxpayers joining in April 2027 will benefit from a temporary quarterly submission penalty easement.
• Household costs: The Budget includes further support for electricity bills and an extension of the fuel duty reduction.

You can read the official Budget documents on GOV.UK.

Important: The Budget contains both immediate measures and announcements requiring future legislation. Proposed dates and relief conditions should be checked before taking action.

Autumn Budget 2026: Key dates to remember

These are the headline commencement dates. Some proposals remain subject to legislation, consultation or detailed implementation rules.

Limited companies and directors: What is changing?

Corporation Tax

The main rate of Corporation Tax remains 25%, with the small profits rate at 19%.

The government has not announced a general increase in these rates and is maintaining its Corporate Tax Roadmap commitments.

For many companies, the more immediate issue will be the changes to capital allowances and the potential effect on tax relief for investment.

Company owners should remember that effective Corporation Tax rates can depend on profit levels, associated companies and available reliefs.

Capital allowances and business investment

Businesses purchasing qualifying plant and machinery may be able to claim tax relief through capital allowances.

The Budget announces two important changes:

• From 1 January 2027, the main rate first-year allowance will increase to 50% for qualifying expenditure.
• From 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax, the main writing-down allowance rate will reduce to 12%.

These changes affect when tax relief is obtained, rather than necessarily changing the total qualifying expenditure ultimately deductible.

Other reliefs, including the Annual Investment Allowance and full expensing for qualifying companies, must also be considered.

What this means for you: If your business is planning to purchase machinery, equipment or other qualifying assets, it is worth reviewing the timing and tax implications before committing to significant expenditure.

Research and Development tax relief

From 1 April 2027, the government intends to remove the R&D Claim Notification Form requirement.

The Additional Information Form will also be simplified from autumn 2027.

These changes should reduce some of the administration for businesses making qualifying Research and Development claims.

However, the underlying eligibility rules remain important. Companies must still demonstrate qualifying R&D activity and retain appropriate supporting evidence.

Business Asset Disposal Relief: A major change for business owners

One of the most significant announcements for business owners concerns Business Asset Disposal Relief (BADR).

From 6 April 2027, the lifetime limit for qualifying gains is set to reduce from £1 million to £500,000.

Qualifying gains within the lifetime limit are taxed at 18%.

For example, assuming an individual has not previously used any BADR lifetime allowance, makes a qualifying £1 million gain and would otherwise pay CGT at 24%:

• Under a £1 million lifetime limit, the CGT on that gain would be £180,000.
• Under a £500,000 lifetime limit, £500,000 would be taxed at 18% and the remaining £500,000 at 24%, producing £210,000.

That represents £30,000 more Capital Gains Tax in this simplified example.

Actual liabilities depend on the tax year, available annual exemption, previous claims, other gains, eligibility and applicable rates.

Transitional and anti-avoidance provisions may also affect the result.

What this means for you: If you are thinking about selling your company, retiring or transferring a business interest, it is important to review your plans well in advance.

Do not assume that signing a contract before April 2027 will necessarily secure the existing treatment.

New Founders’ Relief

The Budget proposes a new Capital Gains Tax Founders’ Relief from 6 April 2027.

It is intended to offer a 10% CGT rate on up to £10 million of lifetime qualifying gains for eligible founders of high-growth, innovative companies.

The scheme is also intended to recognise certain significant early investors.

However, it is not a general replacement for Business Asset Disposal Relief.

The detailed eligibility rules are subject to consultation and future legislation.

For qualifying entrepreneurs, the potential tax savings could be substantial, making it especially important to understand the final conditions before planning a sale.

Company distributions, liquidations and restructuring

The government intends to modernise the taxation of company distributions to individual shareholders from April 2028.

These proposals could affect:

• Company liquidations and winding-up arrangements.
• Share buybacks and shareholder exits.
• Demergers and reorganisations.
• Family business succession.
• Certain arrangements for extracting company profits.

The aim is to make the tax treatment more consistent while protecting genuine commercial transactions.

Detailed draft legislation will be consulted on before implementation.

What this means for you: Anyone considering a significant company restructuring or shareholder exit should obtain advice covering both the existing rules and the proposed reforms.

Employee share schemes and EMI2

From 6 April 2027, the government plans to expand the Company Share Option Plan, which will be known as EMI2.

The individual tax-advantaged option limit will increase from £60,000 to £120,000, and the relevant exercise period will extend from 10 to 15 years.

There will also be changes to the interaction between the EMI and EMI2 schemes.

For qualifying growing companies, these developments may make employee share incentives more attractive.

Sole traders and partnerships: What does the Budget mean for you?

Trading Allowance increasing to £3,000

From 6 April 2027, the Trading Allowance is set to increase from £1,000 to £3,000.

This means that individuals with qualifying trading or miscellaneous income may be able to receive up to £3,000 without paying Income Tax on that income.

The allowance applies to qualifying gross income and is an alternative to deducting actual expenses.

The government also intends to raise the associated Self Assessment trading income reporting threshold.

The change may particularly benefit people operating small side businesses or earning occasional self-employment income.

However, it does not necessarily eliminate other tax registration, National Insurance or reporting obligations.

Income Tax and National Insurance

The headline Income Tax and National Insurance rates have not been increased by this Budget.

However, the Personal Allowance and Income Tax thresholds remain important because frozen thresholds can bring more income into tax as earnings and profits rise.

For sole traders and partners, reviewing profits, deductible expenses, pension contributions and payments on account remains an important part of annual tax planning.

Making Tax Digital for Income Tax

Making Tax Digital (MTD) for Income Tax is continuing.

For taxpayers required to join from April 2027, the government has announced that penalty points will not be charged for late submission of their first four quarterly updates in the 2027/28 tax year.

Certain taxpayer groups will also benefit from deferrals or exemptions until further notice.

This does not mean that MTD has been cancelled.

If you are affected, you should still prepare for the relevant commencement date, digital record keeping and submission requirements.

Changes to Self Assessment payments on account

From April 2029, the government intends to introduce smaller, more frequent payments for taxpayers who are already required to make Income Tax Self Assessment payments on account.

The purpose is to make tax payments more closely reflect when income is earned.

The detailed arrangements remain under development.

For self-employed individuals and partners, maintaining appropriate tax reserves and preparing regular financial forecasts will remain important.

Employers and businesses with staff

National Living Wage and National Minimum Wage

From 1 April 2027, the new announced hourly minimum wage rates will be:

The increases are 3.9%.

Businesses employing staff should review payroll costs, pay structures and budgets.

Employers should also consider the impact on holiday pay, pension contributions and other employment costs, where relevant.

Business mileage allowances

The tax-free mileage rate for qualifying business travel in an employee’s own car or van increased to 55p per mile for the first 10,000 business miles from 6 April 2026.

From 6 April 2027, the rate for business miles above 10,000 will increase to 35p per mile.

Relevant mileage deductions are also available to qualifying self-employed individuals using simplified expenses.

Travel records must distinguish business journeys from ordinary commuting, and employees and employers must apply the relevant mileage rules correctly.

Support for self-employed parents

From April 2029, eligible self-employed fathers, partners and adopters in Great Britain are expected to gain access to a new parental allowance.

Further conditions and administration details will follow.

Business rates in England

Increased relief for qualifying smaller businesses

From 1 April 2027, the government plans to increase Small Business Rate Relief thresholds for qualifying retail, hospitality and leisure properties in England.

The proposed thresholds are:

• Full relief threshold increases from £12,000 to £18,000 rateable value.
• Upper threshold for tapered relief increases from £15,000 to £21,000.

The enhanced thresholds are planned for two years, ending on 31 March 2029.

The government estimates that around 70,000 additional businesses could pay no business rates.

Eligibility will depend on the property and the detailed relief rules.

Pubs, social clubs and live music venues

The Budget provides additional rates support for qualifying pubs, social clubs and live music venues.

The government has announced an increase in relief to 35% from April 2027, subject to the detailed eligibility rules.

There will also be transitional support for qualifying retail, hospitality and leisure properties.

Businesses occupying commercial premises should check the reliefs available and review their rateable values.

VAT changes and online selling

Online marketplaces

From 1 October 2027, online marketplaces are expected to become responsible for collecting VAT on certain sales by UK businesses.

The proposed rules cover UK VAT-registered sellers and other UK businesses meeting the relevant annual £90,000 per-platform sales threshold.

Specified exclusions include personal sales, certain second-hand goods transactions and business-to-business sales.

For online retailers, these changes may affect invoicing, accounting records and the treatment of marketplace receipts.

Electronic invoicing

From April 2029, the government intends to require VAT invoices to be issued in a specified electronic format.

Businesses using older or manual invoicing systems should consider this when reviewing accounting software.

Private hire operators

The government plans to make larger private hire vehicle operators liable for VAT on the full value of qualifying fares from January 2028.

The proposed £50 million annual fare turnover threshold remains subject to the detailed rules.

Landlords: Higher taxes on rental profits

Property income tax rates increasing

A major announcement for landlords is the further increase in Income Tax rates on property income.

From 6 April 2027, the proposed rates for England, Wales and Northern Ireland will be:

These are two percentage points higher than the rates previously planned for April 2027.

For some landlords, this could significantly reduce the net return from personally owned rental property.

The effect will depend on taxable rental profits, other income and applicable reliefs, including finance cost restrictions.

Should landlords consider a limited company?

Higher personal rental income tax rates may lead some landlords to reconsider holding property through a limited company.

However, transferring an existing portfolio into a company can create Capital Gains Tax and Stamp Duty Land Tax liabilities, financing complications and professional costs.

Company profits may also be subject to Corporation Tax, with further personal taxation when profits are extracted.

A limited company is therefore not automatically the more tax-efficient option.

Any restructuring should be considered on its overall merits.

High Value Council Tax Surcharge

The government is progressing a proposed High Value Council Tax Surcharge from April 2028 for qualifying residential properties in England valued at £2 million or more.

The detailed framework includes proposals for discounts, exemptions, deferral arrangements and additional charges for long-term empty properties.

Owners of high-value residential property should monitor the final rules.

Savings, dividends and ISAs

Savings income tax

From 6 April 2027, the proposed rates on taxable savings income will be:

• Basic rate: 24%.
• Higher rate: 44%.
• Additional rate: 49%.

The Personal Savings Allowance, starting rate for savings and tax-free ISA rules remain relevant.

Individuals with substantial savings outside ISAs may wish to review the tax efficiency of their holdings.

Cash ISA allowance remains at £20,000

The government has decided not to proceed with the previously planned reduction in the cash ISA limit.

The cash ISA annual subscription limit will remain at £20,000.

This provides continued access to tax-free savings for eligible individuals.

The most suitable mix of cash and investments will depend on personal circumstances, risk tolerance and financial objectives.

Dividend tax for company shareholders

For 2026/27, the dividend tax rates are:

• Ordinary rate: 10.75%.
• Upper rate: 35.75%.
• Additional rate: 39.35%.

The Dividend Allowance is £500.

These rates are also expected to apply for 2027/28 under the announced position.

Company directors receiving salary and dividends should review their remuneration strategy based on both personal and company taxes.

Pensions, Inheritance Tax and trusts

New Pension Tax Allowance

From 6 April 2027, the government plans to introduce a Pension Tax Allowance to protect pensioners whose total income does not exceed the value of the full new State Pension from becoming liable to Income Tax solely because of pension uprating.

The measure is intended to operate until 5 April 2030, with tapering for certain individuals whose income slightly exceeds the relevant level.

Pensioners receiving additional taxable income should continue to review their overall tax position.

Pension death benefit changes

The government is removing the existing two-year rule that can cause certain pension death benefits to be taxed because payment occurs more than two years after death.

The change is intended to apply to relevant payments made on or after 28 October 2026.

Other pension death benefit tax rules and available allowances remain relevant.

Inheritance Tax and trust liabilities

The Budget includes new anti-avoidance measures concerning the deductibility of certain liabilities involving trust property for Inheritance Tax.

These are intended to apply to deaths and other relevant chargeable events on or after 28 October 2026.

Trustees and families with complex borrowing or estate planning arrangements should review whether the changes affect them.

First-time buyers and homeownership

New First Time Buyer ISA

From April 2029, a new First Time Buyer ISA is planned to replace the Lifetime ISA for new savers.

The proposed scheme includes:

• Annual contributions of up to £4,000.
• A 25% government bonus.
• A maximum lifetime government bonus of £20,000.
• A maximum qualifying property price of £450,000.
• No upper age restriction for opening the new product.

The bonus will be payable on withdrawal for an eligible first home purchase.

Existing Lifetime ISA holders will be able to continue using their accounts under the existing rules.

Lifetime ISA withdrawal charges

From 29 October 2026, the Lifetime ISA withdrawal charge is reduced from 25% to 20% for qualifying first-home purchases above the £450,000 property price cap.

Other unauthorised withdrawals remain subject to the normal 25% charge.

Your First Home scheme

The government also plans to introduce an equity loan scheme from April 2027 to support eligible first-time buyers.

Further eligibility and operational details will be important for anyone considering the scheme.

Energy, fuel and vehicles

Household electricity support

The temporary VAT reduction on domestic electricity in Great Britain is being extended until July 2027.

The Budget also provides for a £100 Household Energy Payment for eligible households in Council Tax bands A to D in England, beginning in January 2027.

Different arrangements may apply in the devolved administrations.

Fuel duty

The temporary 5p-per-litre fuel duty reduction and associated freeze are being extended until 1 July 2027.

This may provide some continued relief for households and businesses with vehicle expenses.

Electric vehicles

From April 2028, a mileage-based electric Vehicle Excise Duty charge is planned for electric and plug-in hybrid cars.

The precise impact on drivers and fleet operators will depend on the final scheme rules, vehicle type and mileage.

Energy-intensive businesses

From April 2027, qualifying energy-intensive businesses may benefit from the British Industrial Competitiveness Scheme, intended to reduce certain electricity costs.

The government estimates that eligible businesses could see substantial electricity bill reductions.

Businesses should check the scheme’s eligibility and application requirements rather than assume that support will apply automatically.

HMRC administration and compliance

The Budget confirms further reforms to HMRC’s approach to tax administration and compliance.

These include more digital reporting, additional compliance activity and changes to how tax liabilities are collected.

From April 2029, businesses will generally be expected to establish Direct Debit arrangements for VAT and PAYE return liabilities, subject to relevant exceptions and payment rules.

HMRC is also modernising the way it uses information to identify tax risks.

For businesses and individuals, this makes accurate records, timely submissions and appropriate supporting documentation particularly important.

What should you do following the Autumn Budget 2026?

The right action will depend on your circumstances.

If you are a limited company director: Review salary and dividend planning, capital expenditure, potential business sales and any forthcoming restructuring.

If you are a sole trader or partner: Consider the increased Trading Allowance, Making Tax Digital requirements and future payment-on-account changes.

If you employ staff: Review payroll budgets before April 2027 and ensure mileage and expense policies reflect the relevant rules.

If you own rental property: Calculate the effect of the proposed higher property income tax rates on your future profits and cash flow.

If you are considering selling your business: Review BADR eligibility, previous claims, potential Founders’ Relief eligibility and the commercial timing of any disposal.

If you have significant savings or investments: Consider your ISA usage and the impact of the proposed changes to savings taxation.

If you are planning retirement or estate succession: Review relevant pension arrangements, inheritance tax exposure and any trust structures.

Autumn Budget 2026: Frequently asked questions

Did Income Tax increase in the Autumn Budget 2026?

The headline rates of Income Tax on employment and self-employment income have not increased. However, higher rates are proposed for property and savings income from April 2027.

Has Corporation Tax increased?

No general increase in the headline Corporation Tax rates has been announced. Changes to capital allowances could nevertheless affect taxable profits and the timing of tax relief.

How does the Budget affect small businesses?

Measures include increased Trading Allowance, targeted business rates support, capital allowance changes, wage increases and new reporting and tax administration obligations.

Will business owners pay more tax when selling their companies?

Some may. The proposed reduction in the BADR lifetime limit from £1 million to £500,000 could increase Capital Gains Tax on qualifying disposals from April 2027. The new Founders’ Relief may provide an alternative for certain eligible entrepreneurs.

Will landlords pay more tax?

Many individual landlords could pay more Income Tax on taxable rental profits from April 2027 under the proposed 24%, 44% and 49% property income tax rates.

What is the new Trading Allowance?

The government plans to increase the Trading Allowance from £1,000 to £3,000 from 6 April 2027. Eligibility and reporting requirements will depend on individual circumstances.

Is Making Tax Digital being cancelled?

No. MTD for Income Tax is continuing, although some taxpayers will benefit from exemptions, deferrals or a temporary quarterly-update penalty easement.

What is the National Living Wage from April 2027?

The announced National Living Wage for workers aged 21 and over is £13.21 per hour from 1 April 2027.

Is the cash ISA allowance being reduced?

No. The government has confirmed that the annual cash ISA subscription limit will remain at £20,000.

When do the Budget changes come into effect?

Different measures have different start dates. Some apply immediately from October 2026, many are planned for April 2027, and other reforms are expected during 2028 and 2029.

How Holden Associates can help

The Autumn Budget 2026 brings a combination of opportunities, additional tax costs and changes to reporting obligations.

While not every announcement will affect every taxpayer, some changes could have a significant impact on the decisions you make about your business, investments, property or personal finances.

The important thing is understanding which changes matter to you and planning accordingly.

At Holden Associates, we help businesses and individuals navigate tax rules, understand their responsibilities and make informed financial decisions.

Whether you need assistance with company accounts, tax returns, payroll, bookkeeping, business planning or tax matters, our team is here to help.

Would you like to discuss how the Autumn Budget 2026 affects you?

Contact Holden Associates to arrange a conversation about your circumstances.