Autumn Budget 2026: What It Means for You and Your Business

The Autumn Budget on 28 October left the main rates of income tax, National Insurance and VAT unchanged. For most employees, very little changes. For landlords, savers and business owners thinking about a sale, there are real changes to plan for, and most of them start on 6 April 2027.

Here are the points most likely to affect you, and what to think about now.

Landlords: tax on rental profits rises again

Budget 2025 had already set separate income tax rates for property income from April 2027. This Budget adds a further two percentage points. From 6 April 2027, rental profits will be taxed at:

• 24% for basic rate taxpayers
• 44% for higher rate taxpayers
• 49% for additional rate taxpayers

These rates apply in England, Wales and Northern Ireland. If you let property, the next five months are a good time to review how it is owned and run: whose name it is in, how finance costs are treated, and whether the timing of repairs or other expenses makes a difference. Our guide to the new property income tax rates explains how the new rates work alongside the rest of your income.

Savers: higher rates on interest

Savings interest moves to the same higher rates from 6 April 2027: 24%, 44% and 49%, across the whole UK. The planned cut to the cash ISA allowance has been reversed, so the annual limit stays at £20,000. For many people, making full use of the ISA allowance will matter more than ever.

Selling your business: the BADR limit halves

Business Asset Disposal Relief stays at 18%, but the lifetime limit falls from £1 million to £500,000 for disposals from 6 April 2027. If you are planning to sell your company, or part of it, in the next few years, the timing of that sale could now make a real difference to the tax you pay.

The Budget also announced a new Founders’ Relief from 6 April 2027, with a 10% Capital Gains Tax rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies. The detail is still being worked out, so it is too early to rely on it.

The first step in any exit plan is knowing what your business is worth. Our business valuations give you a clear, independent figure to plan around.

Driving for work: better mileage rates

The 55p a mile tax-free rate for the first 10,000 business miles, introduced as a temporary measure in May, is now permanent. From 6 April 2027 the rate above 10,000 miles rises from 25p to 35p. These rates apply to cars and vans, including electric cars, whether you are employed and claiming from your employer or self-employed and claiming against your profits.

Investing in equipment: capital allowances change

For companies and unincorporated businesses buying plant and machinery that does not qualify for full expensing or the Annual Investment Allowance:

• the main rate first-year allowance rises from 40% to 50% for spending on or after 1 January 2027
• the main rate writing-down allowance, which applies to the balance in your main pool, falls from 14% to 12% from April 2027

If you are planning a large purchase, the timing around these dates is worth a conversation.

Shops, pubs and cafés: business rates relief

From 1 April 2027, more retail, hospitality and leisure businesses in England will pay no business rates at all. The 100% Small Business Rate Relief threshold for these properties rises from a rateable value of £12,000 to £18,000, with tapered relief up to £21,000.

Making Tax Digital and tax payments

Sole traders and landlords joining Making Tax Digital for Income Tax in April 2027 will not get penalty points for late submission of their first four quarterly updates. The Budget also confirmed plans to replace the current twice-yearly payments on account with smaller, more regular payments from April 2029. Our Making Tax Digital service can get you set up well before your start date.

What to do now

Most of these changes start in April 2027, which gives you time to plan, but not time to wait. Whether you need accountants in Oxford, accountants in Didcot or anywhere in between, we can look at your own figures and show you what the Budget means for you. We work with landlords, sole traders and limited companies across the county, and our tax advice service covers everything from property income to planning a sale.

And with the 31 January 2027 deadline for 2025/26 tax returns coming up, now is a good time to get your self-assessment records to us, so you know where you stand early.