Autumn Budget 2026: what it means for you
Autumn Budget 2026: what it means for you
The Budget on 28 October 2026 left the headline rates alone, but raised tax on rental and savings income, halved the BADR limit and changed capital allowances. Most of it starts on 6 April 2027, which leaves time to plan.
The changes that matter to our clients
Landlords
From 6 April 2027 rental profits get their own income tax rates of 24%, 44% and 49%, four points above the rates on wages and trading profits. A higher-rate landlord with £20,000 of rental profit pays £800 a year more.
Savers
Interest above your personal savings allowance is taxed at 24%, 44% and 49% from 6 April 2027. The planned cut to the cash ISA limit has been dropped, so the full £20,000 ISA allowance stays.
Selling a business
The Business Asset Disposal Relief lifetime limit is halved from £1m to £500,000 for disposals from 6 April 2027. A new Founders’ Relief taxes up to £10m of gains at 10% for qualifying founders of high-growth companies.
Companies
Corporation tax stays at 19% to 25%. The main-rate first-year allowance rises from 40% to 50% for spending from 1 January 2027, while the main writing-down allowance falls from 14% to 12% from April 2027.
Self-employed and side income
The trading allowance triples from £1,000 to £3,000 from 6 April 2027. Making Tax Digital carries on as planned: £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028.
Employers
The National Living Wage rises to £13.21 an hour from 1 April 2027 (18 to 20 year olds: £11.27). Employer NI stays at 15% and the Employment Allowance at £10,500.
When each change takes effect
| From | Change |
|---|---|
| 1 January 2027 | Main-rate first-year allowance rises from 40% to 50% |
| 1 April 2027 | National Living Wage £13.21; main-rate writing-down allowance 12% for companies |
| 6 April 2027 | Property and savings income rates 24% / 44% / 49%; BADR lifetime limit £500,000; Founders’ Relief starts; trading allowance £3,000; writing-down allowance 12% for income tax |
| 6 April 2027 | Unused pension funds and death benefits brought into the estate for inheritance tax (announced in 2024, confirmed) |
| April 2028 | Making Tax Digital for income tax extends to income over £20,000; high value council tax surcharge on homes in England worth £2m or more |
| April 2029 | Salary-sacrificed pension contributions above £2,000 a year lose their National Insurance exemption (announced in 2025) |
What stayed the same
- Income tax, National Insurance and VAT headline rates
- Personal allowance £12,570, frozen to April 2031
- Capital gains tax at 18% / 24%, annual exempt amount £3,000
- Dividend tax at 10.75% / 35.75% / 39.35%, £500 allowance
- Corporation tax 19% small profits rate, 25% main rate
- VAT registration threshold £90,000
- Inheritance tax nil-rate band £325,000 and residence nil-rate band £175,000
- £2.5m 100% allowance for business and agricultural property relief
- Annual Investment Allowance £1m
- ISA allowance £20,000
Five things worth looking at before April 2027
- Landlords: check whether moving properties into a company, or changing how jointly-owned income is split, now saves more than it costs. Property Incorporation Report · Property Income Efficiency Report
- Business owners planning an exit: if a sale is likely in the next couple of years, the date contracts are exchanged could cost or save five figures.
- Savers: use your ISA allowance and make sure savings sit with the spouse or partner paying the lower rate.
- Companies buying equipment: plan big purchases around 1 January and April 2027.
- Anyone with a large pension: review your nominations and drawdown plans before pensions come into the estate in April 2027. Pension Estate Report
Common questions
When was the Autumn Budget 2026?
Did income tax go up in the Budget?
How much more will I pay on my rental income?
Is Business Asset Disposal Relief being abolished?
Has the cash ISA limit been cut?
Do I need to do anything now?
Not sure whether the Budget affects you?
Book a free 30-minute call. We will look at your income, property and plans and tell you straight what changes, and what is worth doing before April 2027.