Autumn Budget 2026: key tax changes for businesses and individuals
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On 28 October 2026, Chancellor of the Exchequer John Healey delivered his first Autumn Budget, announcing a series of tax changes affecting UK businesses, employers, individuals and landlords and outlining measures for economic growth.
Against a backdrop of rising costs and continued global economic uncertainty, the Chancellor emphasised the government’s commitment to providing a budget built on fiscal discipline, giving Britain: “breathing space on the cost of living and the cost of business”.
While the main rates of Income Tax on employment income, National Insurance and Corporation Tax remain unchanged, the Budget introduces several tax changes affecting businesses, employers, individuals and landlords.
Our Autumn Budget 2026 summary provides a comprehensive breakdown of the announcements, including the key tax changes, new allowances and reliefs, and their implications for your financial planning. To access the detailed guide, download the Autumn Budget by clicking the link below.
Key tax announcements and highlights
The Chancellor announced several measures, with many taking effect from April 2027. The key changes include:
- Income Tax: The government will extend the freeze on personal tax thresholds until 5 April 2031.
- Savings and property income: Income Tax rates will increase to 24%, 44% and 49% from April 2027.
- Corporation Tax: The headline rate remains capped at 25%, with Full Expensing continuing.
- Business Asset Disposal Relief (BADR): The lifetime limit will reduce from £1 million to £500,000 for disposals made from 6 April 2027.
- Founders’ Relief: A reduced 10% Capital Gains Tax rate will apply to up to £10 million of qualifying lifetime gains from 6 April 2027, subject to eligibility conditions for high-growth, innovative companies.
- Capital allowances: The First Year Allowance will increase to 50% from January 2027, while the main Writing Down Allowance will reduce to 12% from April 2027.
- National Living Wage: The hourly rate will increase by 3.9% to £13.21 per hour for workers aged 21 and over from 1 April 2027.
- National Insurance: Key thresholds will remain frozen until April 2031.
- Trading Allowance: The allowance for self-employed individuals will increase from £1,000 to £3,000 from April 2027.
- Business rates: Increased relief thresholds to £18,000 for 100% relief and £21,000 for tapered relief and a two-year real-terms freeze will support qualifying retail, hospitality and leisure properties in England from April 2027.
- First Time Buyer ISA: A new savings scheme will launch in April 2029, offering a 25% government bonus on qualifying contributions up to £4,000 per year.
These are just some of the measures announced in the Budget 2026 speech. Download our step-by-step Autumn Budget 2026 summary for a comprehensive breakdown of the changes and their implications now.
What does the Autumn Budget 2026 mean for you?
The Budget presents a mixed picture for businesses and individuals. While targeted reliefs and incentives may encourage investment and growth, changes to tax thresholds, allowances and reliefs could increase costs and tax liabilities.
For business owners, the reduction in Business Asset Disposal Relief may influence future exit and succession plans. Employers will also need to consider rising employment costs, while landlords and savers face higher tax rates from April 2027.
With several measures taking effect over the coming years, understanding their implications and planning ahead will be important.
Get in touch
For further information about the Autumn Budget 2026, or to discuss how the announcements could affect you or your business, please get in touch with our tax experts. To book a personal consultation please complete the contact form below, or contact our tax expert Mark Moore.
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