Autumn Budget 2026: What Was Announced and What It Means for You
Chancellor John Healey delivered the Autumn Budget on Wednesday 28 October 2026. The speech made headlines, but the Treasury documents published afterwards decide your tax bill. We at Pivot Cloud have read those documents. This guide sets out only what they confirm, with the start date for each measure.
Headline rates of income tax, National Insurance and VAT do not rise. Headline Corporation Tax rates do not change either. Instead, the Budget raises more from savings and property income. It gives targeted help on energy and business rates, and it changes several reliefs for our clients in Richmond and South West London. Most tax changes start on 6 April 2027.
Two points in our Budget week readiness guide from Monday need updating. First, the government has reversed the planned Cash ISA cut. Second, the savings and property tax rise is larger than last year’s announced rise.
At a glance
| Measure | Who it affects | When it starts |
|---|---|---|
| Savings and property income tax rises to 24%, 44% and 49% | Savers, landlords | 6 April 2027 |
| Cash ISA limit stays at £20,000 for all adult savers | Cash ISA savers | 6 April 2027 |
| Small Business Rate Relief threshold rises to £18,000, retail, hospitality and leisure, England | Shops, cafes, pubs | 1 April 2027 |
| National Living Wage rises 3.9% to £13.21 an hour, aged 21 and over | Employers, low paid staff | 1 April 2027 |
| Trading Allowance rises from £1,000 to £3,000 | Small traders | 6 April 2027 |
| Business Asset Disposal Relief limit falls from £1 million to £500,000 | Owners selling a business | 6 April 2027 |
| Tax free mileage above 10,000 business miles rises from 25p to 35p a mile | Drivers for work | 6 April 2027 |
| £100 Household Energy Payment, council tax bands A to D, England | Eligible households | From January 2027 |
For individuals
The biggest change for individuals is the tax on savings and property income. From 6 April 2027, the rates will be 24% at the basic rate, 44% at the higher rate and 49% at the additional rate. That is a further 2 percentage points on top of last year’s announced rise to 22%, 42% and 47%. Savings rates apply across the UK. Property rates apply in England, Wales and Northern Ireland, while Scotland sets its own. This hits taxable interest outside an ISA and rental profit for landlords taxed as individuals. It does not hit salary or trading income.
For savers, the government has scrapped the plan to cut the Cash ISA limit to £12,000 for under 65s. The limit stays at £20,000 for all adult savers. From 6 April 2027, a new Pension Tax Allowance protects pensioners whose total income is at or below the full new State Pension. It runs to 5 April 2030. From April 2029, a new Parental Allowance will extend parental pay to eligible self employed fathers, partners and adopters. The government has not published the details yet.
On household bills, the VAT cut on electricity runs to July 2027. The 5p fuel duty cut and freeze runs to 1 July 2027. Households in England in council tax bands A to D will receive a £100 Household Energy Payment into their bank accounts from January 2027. The government plans to abolish gas standing charges, but it has given no firm date.
For landlords
Landlords face the sharpest single tax rise in this Budget: the property income rates of 24%, 44% and 49% from 6 April 2027. Finance cost relief continues at the basic rate. So the higher rates widen the gap between tax on rental profit and relief on mortgage interest. Run the new rates through your actual rental accounts before deciding on a rent rise, a remortgage or a sale.
The Budget also confirms help for landlords joining Making Tax Digital. If you join in April 2027, you will not receive late submission penalty points for your first four quarterly updates in 2027 to 2028. You must still send the updates. HMRC will not accept your final return until you do. Nothing in the Budget documents reverses the previously announced move to bring most unused pension funds into Inheritance Tax from 6 April 2027. Our retirement tax planning guide explains the current position. Estate plans that assumed pensions sat outside the estate still need a review before April.
For limited companies
For most limited companies, this is a Budget of stability. Headline Corporation Tax rates do not change. The government has kept full expensing. The main rate first year allowance rises from 40% to 50% for qualifying spending on or after 1 January 2027. At the same time, the writing down allowance falls from 14% to 12% from 1 April 2027 for companies.
The change that will cost some owners most is on exit. From 6 April 2027, the lifetime limit for Business Asset Disposal Relief falls from £1 million to £500,000. Gains above that will face the main Capital Gains Tax rates instead of 18%. A new Founders Relief also starts on 6 April 2027. It offers a 10% rate on up to £10 million of lifetime gains, but only for qualifying founders of high growth, innovative companies. The government is still consulting on its rules. From April 2028, the government will modernise company distribution rules. As a result, some routes that currently get Capital Gains Tax treatment will instead face tax as dividends. Dividend tax rates do not change for 2027 to 2028, staying at 10.75%, 35.75% and 39.35%.
For high street businesses, the rates change is the most welcome measure. From 1 April 2027, the threshold for 100% Small Business Rate Relief rises from £12,000 to £18,000 of rateable value. This covers qualifying retail, hospitality and leisure properties in England. Tapered relief rises to £21,000, up from £15,000. The government expects around 70,000 more businesses to pay no rates at all. Online marketplaces must collect VAT on UK business sales from October 2027.
What did NOT change
The Budget confirms no increase to the headline rates of income tax, National Insurance or VAT. Headline Corporation Tax rates do not change either. The Personal Allowance stays at £12,570, frozen as already legislated until April 2031. The VAT registration threshold stays at £90,000 for 2027 to 2028, and dividend tax rates are unchanged. Frozen thresholds can still raise bills as pay and profits rise.
What to do now
- Re-run your April 2027 forecast with the new savings and property rates, the £13.21 wage rate if you employ staff, and the new business rates position if you occupy a shop, cafe or similar premises.
- Review ISA plans on the £20,000 Cash ISA limit. If you delayed a decision because of the planned £12,000 cap for under 65s, revisit it now.
- Landlords: test the tax rise on real accounts. Do not decide on a sale, a rent rise or a change of structure from the headline rate alone.
- Owners planning an exit: take advice before 6 April 2027. If a sale could gain above £500,000, the halved Business Asset Disposal Relief limit changes the arithmetic. Do not rely on Founders Relief until its rules are final.
- Employers and high street businesses: check rates and payroll together. Check your rateable value against the new £18,000 and £21,000 thresholds, and put the April 2027 wage rates into your payroll budget.
- Starting out? Use the new Trading Allowance. From 6 April 2027, up to £3,000 of trading and miscellaneous income a year can be received tax free, up from £1,000. Our starting a business guide covers the wider tax choices at that stage.
Nothing in this Budget needs an irreversible decision this week. Most measures start in April 2027, and some detail is still to come. If you would like us to re-run your April 2027 forecast, check your property tax position, or review an exit or a payroll budget, please get in touch. Book a free initial consultation on 020 8287 1047 or through our contact page.
Disclaimer
This guide provides general information about the Autumn Budget 2026 as of October 2026. Tax rules and HMRC guidance can change, including as a result of legislation following the Budget on 28 October 2026. Always consult with a qualified tax professional about your specific circumstances. That’s what we’re here for. In accordance with our normal practice, this reference is given in good faith and in confidence, without legal liability on the part of the author or the company. The author assumes no responsibility or liability for any errors or omissions in the content of this site.
The information provided in this blog is for general guidance and educational purposes only and does not constitute financial, tax, accounting or legal advice. Pivot Cloud Ltd, registered in England and Wales under Company Registration Number 14570549, has prepared this content to offer general insights into financial and taxation matters. Although every effort is made to ensure the accuracy and relevance of the information at the time of publication, no guarantee is given regarding completeness, accuracy or suitability for your specific circumstances.
Readers should not act, or refrain from acting, based solely on the information contained in this content. Professional advice tailored to your personal or business situation should always be obtained before taking any financial or tax related decision. Pivot Cloud Ltd accepts no liability for any loss or damage arising from reliance on the information presented in this blog.