Autumn Budget 2026

The Autumn Budget brought a mix of higher taxes, targeted reliefs and administrative changes. For individuals and business owners, there is more to consider than the headline tax rates. Here is my guide to the positives and negatives, bringing together the main measures and their start dates.

The Negatives

• Savings and property income: rates rise to 24%, 44% and 49% from April 2027, after relevant allowances. Additional property taxes on an uncertain market are unhelpful
• Selling a business: the Business Asset Disposal Relief lifetime limit halves to £500,000 from April 2027. Moving £500,000 of qualifying gains from 18% to 24% would mean £30,000 extra tax. The replacement Founders Relief is unlikely to apply to most.
• Slower capital relief: main-rate writing-down allowances fall from 14% to 12% from April 2027, slowing deductions on relevant assets.
• Payment: More timely Self-Assessment payments could affect cash flow significantly as well as an administrative burden if required monthly. Also VAT/PAYE Direct Debit payment will become mandatory from April 2029.
• Correction Notices: New HMRC power to issue a customer correction notice where they “suspect” an inaccuracy.
• Profit extraction: Profit extraction changes for limited companies from April 2028 may be significant as it is intended to reduce options.

The Positives

• Small trading incomes: the trading allowance rises from £1,000 to £3,000 from April 2027.
• Business rates: qualifying retail, hospitality and leisure properties in England gain full relief up to £18,000 rateable value from April 2027, with tapering to £21,000.
• Less administration: Research and development claim notification forms go from April 2027 as well as simplification of the claims process. New Making Tax Digital entrants in April 2027 avoid late-submission points for quarterly updates in 2027/28.
• Investment and share options: the main-rate first-year allowance rises from 40% to 50% from January 2027. Employee share-option rules become more flexible from April 2027.

The overall picture is mixed: welcome simplifications sit alongside higher rates and changes to the timing of tax payments. The measures also arrive at different times, from January 2027 through to April 2029, rather than taking effect together. For most, the focus will be on the £100 plus the £50 reduced electric bill. Unfortunately, these do not address the underlying issues around energy costs that desperately need addressing. Please get in touch to discuss what the Budget means for you or your business.