Autumn Budget 2026: What it means for you and your business
The Chancellor has delivered the Autumn Budget 2026, with a mix of tax changes aimed at supporting growth while increasing revenue over the coming years. While many of the measures won't take effect immediately, there are several changes that business owners, landlords, company directors and investors should start planning for now.
Here's our breakdown of the key announcements and what they could mean for you.
For individuals
Higher tax rates on savings and property income
From April 2027, tax rates on savings income and property income will increase to 24%, 44% and 49%.
What this means: If you receive significant investment income or rental profits, your future tax bill could be higher. It may be worth reviewing your investment and property structures ahead of these changes.
New pension tax allowance
A new allowance will be introduced to reduce the administrative burden on pensioners whose income does not exceed the full new State Pension. The allowance will gradually reduce as income increases.
What this means: Many pensioners with relatively modest incomes may no longer need to worry about paying small amounts of income tax.
Mileage allowance changes confirmed
The temporary increase to the approved mileage rate of 55p per mile for the first 10,000 business miles will become permanent. The rate above 10,000 miles will increase from 25p to 35p from April 2027.
What this means: Good news for employees and business owners who regularly use their own vehicles for work.
Trading allowance increasing
The tax-free trading allowance will rise from £1,000 to £3,000 from April 2027.
What this means: Individuals generating small amounts of side income through freelancing, online sales or casual work will benefit from a larger tax-free threshold.
More frequent tax payments on the horizon
From April 2029, some taxpayers within Self Assessment will be required to make more regular payments towards their annual tax liability.
What this means: Cashflow planning will become even more important for the self-employed and landlords.
Capital Gains Tax
New Founders' Relief announced
A new relief will allow qualifying founders and early investors in high-growth businesses to pay Capital Gains Tax at 10% on up to £10 million of lifetime gains from April 2027.
What this means: This could be a significant incentive for entrepreneurs building and eventually selling innovative businesses.
BADR lifetime limit reduced
The lifetime limit for Business Asset Disposal Relief (formerly Entrepreneurs' Relief) will reduce from £1 million to £500,000 from April 2027.
What this means: Business owners considering an exit strategy may wish to review their plans sooner rather than later.
Other measures worth knowing about
ISA allowance stays at £20,000
The annual Cash ISA allowance will remain at £20,000 from April 2027.
New First Time Buyer ISA
From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers, offering a 25% government bonus on qualifying contributions.
VAT relief on domestic electricity extended
The temporary 0% VAT rate on domestic electricity has been extended until 30 June 2027.
What this means: Households will continue to benefit from lower energy costs for longer than originally planned.
For businesses
Increased first-year capital allowances
The main rate first-year allowance will increase from 40% to 50% from January 2027.
What this means: Businesses investing in plant and machinery may be able to claim greater tax relief upfront, improving cashflow and reducing corporation tax liabilities.
Changes to ongoing capital allowances
While the first-year allowance is increasing, the main writing-down allowance will reduce from 14% to 12%.
What this means: Businesses should consider the timing of significant capital expenditure to maximise available relief.
Share option scheme improvements
The Company Share Option Plan will be rebranded as EMI2, with higher individual limits and longer exercise periods.
What this means: Growing businesses will have greater flexibility when using share incentives to attract and retain talent.
R&D claims simplified
The requirement to submit a Claim Notification Form for R&D tax relief will be removed from April 2027, with further simplification expected later in the year.
What this means: Making a legitimate R&D claim should become less administratively burdensome.
Company car tax changes
Benefit-in-kind rates for company cars will rise again from 2030, including electric vehicles.
What this means: Businesses with company car fleets should keep future tax costs in mind when making long-term vehicle decisions.
VAT responsibilities for online marketplaces
From October 2027, online marketplaces will become responsible for VAT on sales made by UK businesses with annual sales above £90,000 through their platform.
What this means: Businesses selling through marketplaces should review how these changes could affect pricing, cashflow and compliance processes.
Our view
This Budget introduces several significant changes, particularly for business owners, landlords and investors. While many measures are still some way off, the best opportunities often come from planning early rather than reacting at the last minute.
If you're unsure how any of these announcements could affect your business, property portfolio or personal tax position, now is a good time to start the conversation. The earlier you understand the impact, the more options you'll have available.