Autumn Budget 2026 Summary

The Autumn Budget 2026 has been delivered, and as always the detail matters more than the headlines. Below is a summary of the measures most likely to affect you, whether you run a business, let out property or employ staff.

Most of the changes take effect from April 2027, which gives you time to plan. The dates are worth noting as you read, because they are not all the same.

Income Tax

Income Tax charge and rates for 2027-28

From 6 April 2027:

• There will be no increase to the headline rates of Income Tax or National Insurance contributions (the savings and property rate increases below aside).
• The rates of Income Tax applicable to savings income will increase to 24% / 44% / 49%.
• The rates of Income Tax applicable to property income will increase to 24% / 44% / 49%.

If your income comes mainly from savings or from letting property rather than from employment or trade, these are the two lines to take note of.

Corporation Tax

Rate of Corporation Tax FY 2028

From 1 April 2028:

• The Corporation Tax main rate will be maintained at 25% and the small profits rate at 19%.

For companies, that means the rates you are used to continue, which makes forecasting a good deal easier. You can read more about how we handle this on our Corporation Tax page.

Capital Gains Tax

Three changes were announced, all taking effect from 6 April 2027.

A new Founders’ Relief

A new Founders’ Relief will be introduced. This will provide a 10% rate of Capital Gains Tax (CGT) on up to £10 million of lifetime gains for qualifying founders of, and significant early investors in, high-growth, innovative companies.

The BADR lifetime limit is halved

The Business Asset Disposal Relief (BADR) lifetime limit will reduce from £1,000,000 to £500,000.

If a disposal is on the horizon, this is a change worth modelling before you commit to a timetable.

Gift Holdover Relief

Legislation will modernise the formula that restricts gift Holdover Relief on the disposal of qualifying shares or securities, to include assets within the intangible fixed assets regime or that qualify for the substantial shareholding exemption.

Employment Taxes

From 1 April 2027:

• The National Living Wage (NLW) for those aged 21 and over will increase from £12.71 to £13.21 per hour.
• The National Minimum Wage (NMW) for those aged 18 to 20 will increase from £10.85 to £11.27 per hour.
• The apprentice rate and NMW for those aged 16 to 17 will increase from £8.00 to £8.31 per hour.

Mileage rates

• The Approved Mileage Allowance Payment (AMAP) rate of 25p per mile for travel over 10,000 miles will increase to 35p per mile.
• The 45p per mile rate for the first 10,000 miles has already been legislated to increase to 55p per mile.
• The rates for motorcycles (24p per mile), bicycles (20p per mile) and passengers (5p per mile) remain unchanged.

If you reimburse staff mileage, it is worth checking that your expenses policy and payroll records pick up the new rates from the right date. Our payroll service covers this as a matter of course.

What to do next

A Budget is easier to act on when it is broken down to the handful of measures that apply to you. Broadly:

• Companies have rate stability to plan around, from April 2028.
• Employers have new wage floors and mileage rates from April 2027.
• Landlords and savers face higher Income Tax rates on that income from April 2027.
• Business owners considering a sale should look closely at the reduced BADR limit, and founders at whether Founders’ Relief could apply.

Need more information?

If you would like to talk through what the Autumn Budget 2026 means for you or your business, please get in touch. Call us on 01202 311 311 or contact us to arrange a free initial meeting.

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