Autumn Budget Summary 2026

Following the Autumn Budget on 28 October 2026, we’ve brought together the key points that could affect your business and personal finances.

From changes to savings and property income tax to capital allowances and business rates relief, there is plenty to consider. Some measures were announced in this Budget, while others are previously announced changes approaching their start dates.

For our full breakdown, including tax rates and allowances, please download our Autumn Budget Summary 2026 by completing the form at the bottom of this blog.

Personal tax and savings

Income tax thresholds remain frozen until April 2031. This means that, as earnings increase, more people may move into a higher tax band even where their income is only keeping pace with rising costs.

From April 2027, the following rates will apply to taxable property, savings and dividend income:

	Basic Rate	Higher Rate	Additional Rate
Property income*	24%	44%	49%
Savings income	24%	44%	49%
Dividend income	10.75%	35.75%	39.35%

*Scottish property income tax rates are subject to the Scottish Budget.

The increase in property and savings income tax is now four percentage points above the current rates, replacing the two percentage point increase previously announced. Dividend tax rates remain unchanged.

The proposed restriction on cash ISA subscriptions has been cancelled. The overall annual adult ISA allowance remains £20,000, which can be allocated between cash and stocks and shares ISAs.

Key changes for small businesses

Several measures could affect business costs, investment decisions and administration:

• Trading allowance: From 6 April 2027, the allowance increases from £1,000 to £3,000, providing additional relief for eligible individuals with small amounts of trading income.
• Business rates: From April 2027, the rateable value threshold for 100% Small Business Rate Relief rises from £12,000 to £18,000 for qualifying retail, hospitality and leisure properties in England. Tapered relief extends to £21,000.
• Corporation Tax: The main rate remains 25%, with the small profits rate remaining at 19%, subject to the applicable thresholds and rules.
• Capital allowances: From January 2027, the first-year allowance for qualifying new plant and machinery increases from 40% to 50%. However, the main writing-down allowance reduces from 14% to 12% from April 2027.
• Electric vehicles: The dedicated 100% first-year allowances for qualifying new zero-emission cars and electric vehicle chargepoints expire at the end of March 2027 for companies and on 5 April 2027 for unincorporated businesses. Other allowances may still provide full relief for qualifying chargepoint expenditure.

If you are planning a significant purchase, the timing and type of expenditure could affect when you receive tax relief.

Making Tax Digital and Self Assessment payments

From 6 April 2027, Making Tax Digital for Income Tax extends to sole traders and landlords whose combined gross qualifying income from self-employment and property exceeded £30,000 in 2025/26.

The threshold is based on income before expenses, rather than profit. Those affected will need compatible software, digital records and quarterly updates to HMRC.

Changes to Self Assessment payments are also on the horizon. From April 2029, taxpayers who make payments on account will move to smaller, more regular payments towards their tax bill during the year. Payments will be automated, for example through Direct Debit.

The exact frequency has not yet been confirmed, so monthly payments remain a possibility rather than a confirmed arrangement. This represents a significant change to when tax is paid and will need to be factored into cash flow planning.

Employment costs and benefits

Employers should prepare for several changes affecting payroll and staff costs:

• The National Living Wage for workers aged 21 and over increases to £13.21 per hour from April 2027.
• The employer National Insurance threshold remains frozen at £5,000 until April 2031.
• Mandatory payrolling begins for company cars, vans, fuel and medical benefits from April 2027.

These changes make it a useful time to review payroll processes and employment budgets ahead of the new tax year.

Business sales and succession planning

From 6 April 2027, the lifetime limit for gains qualifying for Business Asset Disposal Relief reduces from £1 million to £500,000. The tax rate on qualifying gains remains 18%.

A new Founders’ Relief has also been announced, proposing a 10% Capital Gains Tax rate on qualifying gains up to a £10 million lifetime limit. It is intended for qualifying founders and early investors in high-growth, innovative UK companies, with the detailed conditions subject to consultation.

As previously announced, most unused pension funds will also come within the scope of Inheritance Tax for deaths from 6 April 2027. This could affect retirement and estate planning, making it a useful time to review existing arrangements.

Download our full Autumn Budget Summary 2026

These are some of the key points affecting small business owners and individuals. The impact will depend on your circumstances and when the changes take effect.

For our full breakdown of the Autumn Budget 2026, including the main tax rates, allowances and forthcoming changes, please complete the form below to download your copy.

If you would like to discuss what the announcements mean for you, your business or your family, please contact our team.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk