Autumn Budget 2026

On Wednesday 28 October, John Healey delivered his first Budget as Chancellor of the Exchequer. We have reviewed the Budget announcements and supporting documents to bring you the information you need to understand the changes and plan ahead.

For a detail look at the measures and what they could mean for you or your business, visit our Autumn Budget 2026 guide.

Read our Autumn Budget Guide here

For an overview of the key announcements and when they are being introduced, you can read our Autumn Budget summary below.

To give you a complete picture of the changes and what they could mean for your financial and long term goals, we would suggest you read both the articles. If you have any questions about how the changes could affect you or your business, our team is here to help and support you.

Our Autumn Budget 2026 Summary

On Wednesday 28 October, John Healey delivered his first Budget as Chancellor of The Exchequer.  The announcements will impact individuals and businesses across the UK.  Below is a brief summary of the main announcements and when they are being introduced.

Changes from 29 October 2026

• For Lifetime ISA holders that wish to purchase a property above the £450,000 property price cap, a reduced penalty charge will apply.
• The Government will extend both the temporary 5p per litre fuel duty cut, and the temporary 3.7p per litre red diesel duty cut, through to 1 July 2027.

Changes from January 2027

• An additional 20% reduction in Business Rates for pubs, music venues and social clubs in England.
• An increase to the Small Business Rates Relief threshold from £12,000 to £18,000 for 100% relief, and from £15,000 to £21,000 for tapered relief.
• Business Rates will be frozen for other retail, hospitality and leisure properties in England.
• Business Rates Relief will be denied for vape shops and adult gaming centres in England.
• The main rate First Year Allowance, which provides tax relief for the cost of new and unused plant and machinery purchased for use in a business, will increase from 40% to 50% for expenditure incurred on or after 1 January 2027.
• The reduction of VAT on the supply of domestic electricity from 5% to 0% has been extended to 1 July 2027.
• The launch of a new Household Energy Payment Scheme, will see twenty million households in England, in Council Tax bands A – D, receive a one-off payment of £100 direct into their bank account to help with the rising costs of energy bills.  Funding will be provided to the devolved Governments to enable them to consider a similar scheme.

Changes from April 2027

• The Government has decided not to reduce the cash ISA limit down to £12,000, as was previously announced.  Instead, it will remain at £20,000.
• Taxpayers joining Making Tax Digital (MTD) for Income Tax in April 2027 will not receive any penalty points for late submission of their first four quarterly returns.  The Government have also announced that they will defer the proposed rollout of MTD to other taxpayer groups until further notice.
• The Government will increase the 2027/28 van and van fuel benefit in kind charges in line with the Consumer Price Index.
• The main rate Writing Down Allowance, which provides tax relief for the cost of plant and machinery purchased for use in a business, will reduce from the current rate of 14% to 12% from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax.
• The tax-free mileage rate, for the first 10,000 business miles travelled, was temporarily increased from 45p to 55p from April 2026.  This increase will be made permanent.  In addition, the rate for any business miles above 10,000 in a tax year, will increase from 25p to 35p from 6 April 2027.
• The Government will increase Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index.
• The previously announced increase of 2% on Income Tax rates for property and savings income, will increase by a further 2%.  So, the rates will now increase from 20% to 24% (basic rate), from 40% to 44% (higher rate) and from 45% to 49% (additional rate).
• A new Pension Tax Allowance will be introduced for pensioners with total income up to the value of the full new State Pension, to ensure they will not be brought into paying Income Tax.  For pensioners with income above the full new State Pension, the allowance will reduce by £1 for every £3 over the allowance.  For 2027/28, pensioners will not pay tax if their income does not exceed £13,037.
• The Trading Allowance will increase from £1,000 to £3,000, meaning self-employed individuals with earnings up to £3,000 will not need to pay tax on this income or report it to HM Revenue & Customs (HMRC).
• The lifetime limit for Capital Gains eligible for Business Asset Disposal Relief (BADR) will be reduced from £1 million to £500,000.
• Introduction of a new Capital Gains Tax Founders Relief, offering a reduced Capital Gains Tax rate of 10% for eligible gains up to a lifetime limit of £10 million, supporting talented individuals who take risks to build high growth innovative companies.
• The National Living Wage will increase by 3.9% to £13.21 per hour.  The National Minimum Wage will increase by 3.9% to £11.27 per hour for 18-20 year olds and to £8.31 per hour for 16-17 year olds and eligible apprentices.
• The Chancellor has asked Ofgem to deliver, by the end of 2027, the removal of standing charges on gas bills for residential households.  This fixed cost will instead be added to the unit rate, potentially reducing annual household gas bills by £45.
• The Government is also committed to the reform of the electricity standing charges and will set out details of this in 2027.

Changes from April 2028

• The Government will remove the £2,500 threshold which will allow more employees to claim tax relief on non-reimbursed employment expenses through the PAYE system, instead of having to prepare a Self Assessment tax return.  Increased evidence will be required for claims to be approved.

Changes from April 2029 onwards

• For first time buyers, a new First Time Buyer ISA will be launched to support savers to save for their deposit.  This will allow contributions of up to £4,000 a year with a 25% Government bonus.  The bonus will be paid on the value of the account balance when funds are withdrawn for a qualifying first home purchase, up to the value of £450,000, so avoiding the need for any withdrawal charge.
• The Government will require Income Tax Self Assessment taxpayers to make tax payments more regularly throughout the tax year, as opposed to the current 31 January and 31 July payment dates.
• The Government will require direct debit arrangements to be in place for VAT and PAYE liabilities.
• VAT invoices will have to be issued in an electronic format.
• Eligible self-employed fathers, partners and adopters will be able to access parental pay.
• HMRC to be given more powers to collect tax directly from the bank accounts of individuals or companies who can afford to pay their tax bills but repeatedly fail to do so.
• From 2030/31, the weekly earnings limit for those claiming Carer’s Allowance will be reformed, so that claimants no longer lose their entitlement if their income exceeds the threshold.  Instead, a taper system that reduces the benefit will be introduced.
• The Government have announced that benefit in kind rates for company cars will increase by 1% for the 2030/31 tax year when compared to the previous 2029/30 year.  This will see zero-emission cars increase from 9% to 10%, rates for cars emitting 1 – 50g CO2/km increasing from 19% to 20% and all other rates increasing by 1% subject to a maximum of 40%.

Other measures but no start dates announced

• The Government is working with the investment industry to explore a new ISA incentive for people investing in a stocks and shares ISA for the first time.
• A new First Home Scheme in England will be introduced to support people who cannot raise the necessary level of deposit required.  The minimum deposit required will be 2.5% and the scheme will offer 20% equity loans with a five-year interest free period.
• A modernisation of the taxation of company dividends is on the cards.
• A new Young Entrepreneurs Allowance will be piloted with successful applicants being awarded support towards their living costs during the first year of business.
• A fiscal devolution exercise will see local Mayors and Governments get to keep more of the Business Rates that the businesses in their region pay, and the Income Tax that their residents pay.

Over the coming days, we will share a more detailed guide highlighting the points that will matter most to you and your business, together with practical guidance on how they may impact you.  In the meantime, please do not hesitate to get in touch with our team should you have any queries.

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