News & Insights · 29 October 2026
Autumn Budget 2026: What It Means for Businesses, Individuals and Landlords
Chancellor John Healey delivered his first Budget on 28 October. No new tax on wages or dividends, but more on savings, property and banks. Here is what it means in real money, in plain English.
Call 01778 252712
The headline: the Chancellor held off on rises to income tax, National Insurance and dividend tax, and raised money from savings income, property income and banks instead. There are also a few welcome changes for small businesses and a bit of help with energy bills. The OBR has cut its growth forecast for 2027 from 1.6% to 1.0%, and the Chancellor has £15bn of headroom against his fiscal rules in 2029–30.
The key dates at a glance
Other points: the bank surcharge hits banks rather than their customers, and the UK-wide rules on e-invoicing for VAT are due from April 2029. From April 2027, UK businesses that are not VAT registered buying services from overseas suppliers will see those suppliers charging UK VAT.
If you run a small or medium-sized business
The big ones to plan for are wages, equipment purchases and any exit plans.
National Living Wage up 3.9%
The rate for over-21s is £12.71 now and rises 3.9% from April, which takes it to about £13.21. Over a year that is roughly 50p an hour more.
Example: A café employs 5 full-time staff (37.5 hours a week) on the Living Wage. Each one costs about £975 more in wages, or around £1,120 once employer NI at 15% is added. For 5 people, that is roughly £5,600 a year. Worth building into your prices and rotas now, not in April.
Capital allowances: faster relief up front, slower after
The main-rate first-year allowance goes up to 50% for spending from 1 January 2027. The flip side: the main-rate writing-down allowance drops from 18% to 12% from 1 April 2027 (6 April for sole traders and partnerships).
Example: A limited company buys £20,000 of qualifying equipment in February 2027. £10,000 comes off taxable profit in year one, worth roughly £1,900 to £2,500 in corporation tax depending on profits. The remaining £10,000 is then written down at 12% a year (£1,200) rather than 18% (£1,800). Many purchases still qualify for the Annual Investment Allowance or full expensing, so check the best route before you buy.
Trading allowance: £1,000 to £3,000
From 6 April 2027 the first £3,000 of trading or side income can be tax-free, and the Self Assessment reporting threshold rises with it.
Example: Jo sells handmade candles online on top of a day job and makes £2,500 a year. From April 2027 there is nothing to declare and nothing to pay on it. At £4,000, Jo would still need to register and report.
Selling your business? Mind the Business Asset Disposal Relief cap
The lifetime limit for Business Asset Disposal Relief (BADR) falls from £1,000,000 to £500,000 for disposals on or after 6 April 2027. The rate on gains within the limit is 18% today.
Example: A director sells their company for a £1m gain, and pays higher-rate CGT of 24% on gains above the relief limit. Sale before 6 April 2027: 18% on £1m = £180,000. Sale after: £500,000 at 18% (£90,000) plus £500,000 at 24% (£120,000) = £210,000. That is £30,000 more, so timing matters. Speak to us early if a sale is on your horizon.
A new Founders' Relief (10%) - but read the small print
A new 10% CGT rate is coming for qualifying founders on up to £10m of lifetime gains, for disposals from 6 April 2027. It is aimed at founders and early investors in high-growth, innovative companies, and the detail is still out for consultation (closing 30 November 2026).
Example: Most owner-managed businesses will not qualify, and the rules may change before they become law. We will tell you straight if it applies to you, rather than get your hopes up.
High street support
The small business rate relief threshold for retail, hospitality and leisure businesses rises from £12,000 to £18,000, helping around 70,000 smaller firms.
Example: A Market Deeping shop with a rateable value of £16,000 sits above the old limit but within the new one, so could newly qualify for relief. Worth asking your council.
If you are an individual
Your pay packet is largely untouched, but savers and anyone on a tight budget should look closely.
Personal Allowance stays frozen at £12,570
The freeze runs to April 2031. There is no new rise in tax on wages, but as pay creeps up more of it is taxed. This is called fiscal drag.
Example: Sam earns £30,000 and gets a 4% pay rise to £31,200. Because the allowance has not moved, the extra £1,200 is taxed at about 28p in every £1 (20% tax plus 8% NI). Sam keeps around £864 of it.
Savings tax rises from April 2027
Savings income rates go to 24% (basic), 44% (higher) and 49% (additional) from 6 April 2027. That is 4 points above today's 20%, 40% and 45%. Two of those points were already planned, and two are new in this Budget.
Example: Priya is a higher-rate taxpayer with £100,000 in savings earning 4%, so £4,000 of interest. After her £500 personal savings allowance, £3,500 is taxable. Tax today: £1,400. Tax from April 2027: £1,540. That is £140 a year more.
Cash ISA allowance stays at £20,000
The planned cut to £12,000 has been scrapped, and the £20,000 limit stays for everyone over 18. A new first-time buyer ISA will replace the Lifetime ISA.
Example: Put the full £20,000 in a cash ISA at 4% and the £800 interest is tax-free. For a higher-rate taxpayer that is worth up to around £350 a year once the new 44% rate applies. The higher savings tax makes the ISA wrapper more valuable.
Energy bill help
20 million households in Council Tax bands A to D get a one-off £100 payment, expected from January 2027. Standing charges on gas bills are being abolished (about £45 a year on average), and the 0% VAT rate on domestic electricity is extended to 30 June 2027.
Example: A family in a Band C home gets £100. If they spend £1,200 a year on electricity, the zero VAT rate saves them about £57 compared with the 5% rate. Fuel duty is frozen again too.
If you are a landlord
Landlords see the sharpest rise in tax this time.
Property income tax goes up
From 6 April 2027 the property income rates are 24% (basic), 44% (higher) and 49% (additional) in England, Wales and Northern Ireland. Scotland sets its own rates.
Example: Tom has £20,000 of rental profit taxed at the basic rate. Tax today: £4,000. From 2027/28: £4,800, which is £800 a year more (£400 of it from this Budget's extra 2 points). Or take a landlord with 3 properties and £45,000 of rental profit all taxed at the higher rate: £18,000 today, £19,800 from April 2027, which is £1,800 more.
Every pound of expenses counts for more
With higher rates, missed allowable expenses (repairs, agent fees, insurance, accountancy) cost you more than they used to.
Example: £1,000 of repairs and fees you forgot to claim costs a basic-rate landlord £240 of extra tax from 2027/28, instead of £200.
MTD is coming too, and 'should I incorporate?' is not a quick fix
Landlords with qualifying income over £50,000 are already in scope of Making Tax Digital for Income Tax, and the threshold drops to £30,000 in April 2027. Tidy digital records in Xero now make life much easier.
Example: Landlords hear about 'incorporating' as the answer to everything. It is rarely a quick fix, as it can bring Capital Gains Tax and Stamp Duty costs. We will run the numbers with you before you decide.
Your Budget to-do list
- Employers: budget for the April Living Wage rise, and review prices and rotas.
- Planning a big purchase? Talk to us before 1 January 2027 about the best allowance route.
- Thinking of selling your business? Get advice before 6 April 2027, as the BADR cap halves.
- Higher-rate saver? Use your £20,000 cash ISA allowance before the new savings rates start.
- Landlords: get your expenses and records in order in Xero, ready for 2027/28 and MTD.
- Side income under £3,000? Check whether you can stop reporting it from April 2027.
This is general information based on the Budget announcements and HMRC's published Budget documents as at 29 October 2026, not personal advice. Some measures are still subject to legislation in Finance Bill 2026-27 and consultation, so details may change. Sources: HMRC Budget 2026 Overview of Tax Legislation and Rates and the Guardian's Budget 2026 key points.
Want to know what it means for you?
Every business and household is different. Call us on 01778 252712, or PM us on Messenger (@FiguresUK1) or WhatsApp (01733 612008) and we will talk you through it. No jargon, promise.
Call 01778 252712Need help with this?
Get In Touch
Get In Touch With Us
Want a fixed monthly quote or a quick chat about switching accountants? Send us a message — we'll reply with clear next steps.
Worried about switching? Don't be.
You can move to Figures UK at any point in the year — no need to wait for year end. We handle the entire handover, including moving your records and transferring everything to HMRC, so the switch is seamless and stress-free for you.