29th October 2026
The Chancellor delivered the Autumn Budget on 28 October 2026, announcing changes to taxation, business costs and financial support that will affect individuals, landlords, employers and businesses across the UK.
While some measures aim to support households and encourage investment, others could increase tax liabilities and introduce additional reporting requirements.
At THL Accountancy, we’ve summarised the key announcements and what they could mean for you and your business.
1. Personal Tax and Savings
Income Tax: The Personal Allowance remains frozen at £12,570, with the higher-rate threshold remaining at £50,270 for 2027/28. Main Income Tax rates remain unchanged at 20%, 40% and 45% in England, Wales and Northern Ireland. Frozen thresholds could mean higher tax bills as earnings increase.
Savings Income: From 6 April 2027, tax rates on taxable savings income will increase to 24%, 44% and 49%. Existing savings allowances and ISA exemptions remain relevant.
Trading Allowance: The trading allowance will increase from £1,000 to £3,000 from April 2027, potentially benefiting individuals with smaller self-employment or additional trading income.
ISAs: A new First Time Buyer ISA is planned from April 2029, allowing annual contributions of up to £4,000 with a 25% Government bonus, subject to conditions. Existing Lifetime ISA holders can retain their accounts.
2. Landlords and Property Owners
Rental Income Tax: From April 2027, tax rates on rental profits are set to increase to 24%, 44% and 49% in England, Wales and Northern Ireland, potentially reducing landlords’ after-tax income.
High-Value Properties: An additional Council Tax surcharge is planned from April 2028 for residential properties in England valued at £2 million or more.
3. Business Owners and Limited Companies
Corporation Tax: The main rate remains at 25%, with a 19% small profits rate, confirmed for the financial year beginning April 2028.
Business Asset Disposal Relief: From April 2027, the lifetime relief limit will reduce from £1 million to £500,000, potentially increasing Capital Gains Tax liabilities when selling a qualifying business.
Founders’ Relief: A proposed new relief will offer qualifying founders and early investors a 10% Capital Gains Tax rate on up to £10 million of eligible lifetime gains from April 2027, subject to detailed rules.
Capital Allowances: The main-rate first-year allowance will increase from 40% to 50% from January 2027. The main-rate writing-down allowance will reduce to 12% from April 2027.
Business Rates: From April 2027, qualifying retail, hospitality and leisure businesses in England will benefit from increased Small Business Rate Relief thresholds.
4. Employers and Payroll
National Living Wage: From 1 April 2027, the rate for workers aged 21 and over will increase to £13.21 per hour.
Payrolling Benefits: From April 2027, employers will be required to payroll specified benefits, including company cars, vans, fuel and medical benefits. Most other taxable benefits will follow from April 2028, subject to exceptions.
Company Cars: Further increases to benefit-in-kind percentages are planned, including for electric vehicles.
5. VAT, Making Tax Digital and HMRC Compliance
Electronic VAT Invoicing: Mandatory electronic VAT invoicing is planned from April 2029, requiring businesses to use prescribed electronic formats.
Making Tax Digital: The next group of qualifying sole traders and landlords will join Making Tax Digital for Income Tax from April 2027. Late submission penalty points for quarterly updates will not apply during 2027/28 for those joining that April, although reporting obligations remain.
VAT on Overseas Services: From April 2027, changes to the reverse charge rules could increase costs for certain non-VAT-registered businesses purchasing overseas services.
VAT and PAYE Payments: Direct Debit arrangements are planned from April 2029, subject to exceptions and further guidance.
HMRC Compliance: New rules concerning the correction of certain tax return inaccuracies are expected from April 2028.
6. Pensions and Inheritance Tax
Unused Pension Funds: From April 2027, most unused pension funds and pension death benefits will be included in Inheritance Tax calculations.
Pension Death Benefits: Changes effective from October 2026 remove certain tax consequences associated solely with delays in paying qualifying death benefits.
7. Motoring and Business Travel
Mileage Allowances: The 55p-per-mile rate for the first 10,000 qualifying business miles has been made permanent. From April 2027, the rate above 10,000 miles will increase to 35p.
Electric Vehicles: A mileage-based charge is planned from April 2028, initially 3p per mile for fully electric vehicles and 1.5p for plug-in hybrids.
Fuel Duty: The temporary 5p-per-litre reduction will continue until 30 June 2027, with increases scheduled thereafter.
Businesses with significant travel or vehicle costs should consider these changes when reviewing future expenditure.
8. Household Support and Cost of Living
The Budget also includes several measures intended to support households:
- £100 Household Energy Payment for qualifying households in England from January 2027.
- Electricity VAT relief extended until June 2027.
- £2 bus fare cap on qualifying services in England outside London for one year from January 2027.
- First-time buyer support through proposed housing schemes.
- Additional energy assistance for eligible households.
How THL Accountancy Can Help
The Autumn Budget 2026 introduces changes that could affect tax liabilities, business costs and financial planning over the coming years.
At THL Accountancy, we help businesses and individuals understand their tax obligations, prepare for legislative changes and make informed financial decisions.
Whether you need assistance with Corporation Tax, personal taxation, payroll, VAT, Making Tax Digital or general business advice, our team is here to help.
Want to understand how the Budget could affect you or your business?
Contact THL Accountancy to discuss your circumstances and how we can help you plan ahead.