Autumn Budget 2026
We just wanted to set out the main takeaways from the autumn budget and flag the changes and increases.
- Tax rates on property and savings income
This budget has further increased the rates by another 2% on what was proposed in 2025 to:
24% for basic rate tax payers
44% for higher rate taxpayers; and
49% for additional rate taxpayers
This is coming in from April 2027 - Trading Allowance
From 6 April 2027, if you have a small business or side hustle, you can earn up to £3,000 of qualifying trading without paying income tax on it. - Capital Gains Tax
The lifetime limit for Business Asset Disposal Relief will be reduced from £1m to £500,000 for disposals from 6 April 2027. - Corporation Tax
The main corporation tax remains at 25% and the main writing down allowances will fall from 14% to 12% from April 2027. - Increased personal allowance for low-income pensioners
For the first time, the new full rate of the state pension in 2027-28 will exceed the personal allowance. The full rate will be £13,037.
The new “pension tax allowance” is £13,037 and will be tapered by £1 for every £3 of income over £13,037. Therefore anyone with income over £13,319 will not receive the pension tax allowance but will revert back to the normal £12,570 personal allowance. - HMRC tackling tax debt
From April 2029, some taxpayers will need to make automated in-years payments of self-assessment tax, with the option to pay through PAYE.
The government will require taxpayers to set up mandatory direct debits for VAT and PAYE from April 2029. - Changes for employers and employees
Approved mileage rates for business journeys has been fixed at 55p per mile up to 10,000 miles, then increased to 35p for miles in excess of 10,000.
National minimum wage will rise by 3.9% from 1 April 2027, for employees aged 21 and over up to £13.21; for 18-20 rise to £11.27 and 16-17 year olds up to £8.31.
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