Chancellor John Healey delivered his first Budget on 28 October 2026. There was no single headline tax grab, but a series of targeted changes, most taking effect from 6 April 2027. Tax rates on wages are unchanged, while landlords, savers and anyone planning to sell a business will pay more.
This series is a short summary of what matters most for each group of clients. It doesn’t cover everything. For the full detail, including all the key dates, the figures behind each change and our action list, please download our Autumn Budget 2026 client briefing (PDF), which is the main reference document.
Part 1: What Landlords Need to Know
From 6 April 2027, rental profits will be taxed at 24%, 44% and 49%, four points above today’s 20/40/45%. Every £10,000 of rental profit taxed at the higher rate will cost £4,400, up from £4,000. (Rates apply in England and Northern Ireland.)
Also changing:
Letting agents and tenancy deposit schemes may have to report landlord income to HMRC (consultation closes 20 January 2027)
Making Tax Digital applies from April 2027 if your rents and turnover topped £30,000 in 2025-26
A new council tax surcharge on homes worth £2m+ starts in 2028
What to do now: Ask us to re-run your 2027-28 projection, and correct any unreported income before HMRC’s new data finds it. Thinking of moving property into a company? Talk to us first, as Stamp Duty, capital gains and refinancing costs can apply.
General information only, not advice. Measures may change.
Part 2: Business Owners and Directors
Selling up costs more. Business Asset Disposal Relief halves from £1m to £500,000 of lifetime gains for disposals on or after 6 April 2027. That’s roughly £30,000 more tax on a £1m gain. A new 10% Founders’ Relief exists, but only larger, fast-growing companies will qualify.
Running a company:
Corporation tax is unchanged (25% main rate, 19% small profits rate)
First-year allowance rises from 40% to 50% for spending from 1 January 2027
Dividend and share buyback rules are reformed from April 2028
What to do now: If a sale, buyback or retirement is likely within 18 months, look at timing now. Planning equipment purchases? Consider 1 January and April 2027.
General information only, not advice. Measures may change.
Part 3: Employers, Freelancers and Creatives
Employers: From April 2027, company cars, vans, fuel and medical cover must go through payroll. The tax-free mileage rate above 10,000 miles rises from 25p to 35p.
Freelancers and creatives:
The trading allowance triples to £3,000 from April 2027, so small side incomes may no longer need a tax return
From October 2027, online marketplaces will account for VAT on some sellers’ sales
If you’re not VAT-registered, overseas suppliers of software and design tools will charge you UK VAT directly from April 2027
What to do now: Check your payroll software is ready, and get digital records in place early if you’re joining Making Tax Digital.
General information only, not advice. Measures may change.
Part 4: Savers, Families and Pensions
Savings interest above your allowances will be taxed at 24%, 44% or 49% from April 2027, which makes ISAs more valuable
Cash ISA limit: the planned cut has been scrapped, so you can still save up to £20,000 a year in cash
Inheritance tax: thresholds stay frozen, and pensions still come into IHT from April 2027
Child Benefit: families who repaid overpaid benefit can now offset it against the High Income Child Benefit Charge
What to do now: Use your ISA and pension allowances fully, and check which partner holds interest-bearing accounts.
Many of these measures are still subject to consultation and legislation, so details may change. If anything here affects you, please speak to us before acting on it.