Autumn Budget 2026: What It Means for You
On Wednesday 28 October 2026, Chancellor John Healey delivered his first Budget, and the first under Prime Minister Andy Burnham. The headline rates of income tax, National Insurance and VAT are unchanged. But there are targeted tax rises on savings income, rental income and banks, alongside new help with energy bills and a scheme for first-time buyers.
We've picked out the changes most likely to affect our clients below. For a one-page overview of every key announcement, download our summary.
Individuals and investors
Tax on income from work is unchanged, but tax on savings interest is going up again. The freeze on income tax and NI thresholds still runs until 2031, so more of your income will drift into higher bands as pay rises.
Savings income: Rates rise by a further 2%, on top of last year's planned increase, to 24%, 44% and 49% from April 2027. Interest in an ISA remains tax-free.
ISAs: The planned £12,000 cap on cash ISAs for under 65s has been scrapped. Everyone keeps the full £20,000 allowance. A new First Time Buyer ISA will replace the Lifetime ISA for new savers.
Dividends: No change. Rates stay at 10.75% (basic) and 35.75% (higher).
Capital Gains Tax: Main rates are unchanged. A new 10% Founders' Relief will apply to up to £10m of lifetime gains for qualifying founders of high-growth companies from April 2027. The Business Asset Disposal Relief lifetime limit halves from £1m to £500,000.
Pensioners: From April 2027 to April 2030, pensioners whose total income is no more than the full new State Pension will pay no income tax.
What it means for you: If you hold significant cash savings outside an ISA, now is a good time to review where that money sits before April 2027.
Landlords
Landlords holding property personally will pay more tax on rental profits from April 2027. Property income rates rise by a further 2%, to 24%, 44% and 49%, in England, Wales and Northern Ireland.
For example, a basic rate landlord with £10,000 of taxable rental profit will pay £2,400 a year. That compares with £2,000 today and £2,200 under last year's plans.
The High Value Council Tax Surcharge on homes worth over £2m is confirmed for April 2028, with a new deferral scheme and some exemptions. Homes left empty for 12 months or more will pay a 100% premium.
What it means for you: With two rate rises in two years, it is worth reviewing how your properties are held. Moving to a limited company can suit some landlords but not others, as there can be Capital Gains Tax and Stamp Duty costs.
Business owners and employers
There is welcome relief for small high street businesses, and new incentives to invest. Employers should budget for a 3.9% rise in wage costs from April 2027.
Business rates: The 100% small business rate relief threshold for retail, hospitality and leisure rises from £12,000 to £18,000 from April 2027. Around 70,000 more businesses will pay nothing. Pubs and most live music venues get an extra 20% relief.
Capital allowances: The first-year allowance rises from 40% to 50% from January 2027. The main writing-down allowance falls from 14% to 12% from April 2027.
Minimum wage: From 1 April 2027, the National Living Wage rises from £12.71 to £13.21 an hour, and the 18-20 rate from £10.85 to £11.27. All rates rise by 3.9%.
Side businesses: The trading allowance triples from £1,000 to £3,000 from April 2027.
Mileage: The 55p a mile rate for the first 10,000 business miles is now permanent. The rate above that rises from 25p to 35p from April 2027.
Share options: CSOP becomes Enterprise Management Incentives 2 (EMI2), with the individual option limit doubled to £120,000 from April 2027.
Making Tax Digital: If you join in April 2027, you won't get late submission penalty points for your first four quarterly updates.
Online sellers: From October 2027, marketplaces must collect VAT on sales by UK businesses selling over £90,000 through them.
What it means for you: If you plan to buy equipment, timing it after 1 January 2027 could boost your relief.
Households, pensioners and first-time buyers
The Budget's main help for households is with energy costs.
Energy bills: Up to 20 million households in council tax bands A to D will receive a £100 Household Energy Payment from January 2027. 0% VAT on household electricity is extended to June 2027, and gas standing charges are to be abolished.
State Pension: The full new State Pension rises by 3.9% to £13,036 a year. From April 2030, the triple lock will change so increases track earnings.
First-time buyers: A new £4.7bn Your First Home scheme from April 2027 will offer government equity loans of up to 20%, with deposits from 2.5% and no interest for five years.
Fuel duty: The 5p cut is extended until July 2027.
What to do next
Most of these changes take effect from April 2027, so there is time to plan. We'd suggest reviewing:
Cash savings held outside an ISA
How your rental properties are owned
The timing of any equipment purchases or business sale
Your staffing budget for 2027/28
This article is for general information only and does not constitute advice. Professional advice should always be obtained before acting on it. Some measures still need to pass through Parliament and may change.
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