Blog · Budget 2026

Autumn Budget 2026: what’s changed for your business, your property and your tax

Limited companies, landlords, VAT, CIS, mileage and business expenses. Every change and every date, in plain English. A ten-minute read.

By Umang · Published October 2026 · ← All guides

Last updated 28 October 2026, Budget day. We’ll update this post when the Finance Bill is published and again when it becomes law.

TLDR: Limited companies got off lightly: no change to corporation tax, dividend tax or employer NI. Landlords and savers are set to pay more from April 2027. Mileage, side income and a few business expenses should get better. There’s no change to CIS and very little to VAT. Remember, these are announcements, not law yet. Almost all of it starts from April 2027 or later, so nothing changes for you today.

I went through the Budget documents line by line on Wednesday afternoon so you don’t have to. This is the summary I’d give any of our clients if they asked me “so what actually changed?”

Short version: a lot less than the rumours said. No income tax rise on wages or profits, and no CGT rate rise. Nobody touched dividends.

But “nothing much changed” isn’t the same as “nothing changed for you”. Here’s what was announced, by the kind of business you run. Under each section you’ll see where this stands: whether it’s already law, and when it’s expected to be.

Budget 2026 at a glance

Is any of this law yet?

Mostly, no. “But the Chancellor announced it, so it’s done.” Not quite. A Budget is a set of announcements. Each change then has to go through Parliament before it becomes law.

1. Most of the tax changes go into the Finance Bill 2026-27. That covers the property and savings rates, the trading allowance, BADR, capital allowances, the VAT changes and payrolling of benefits. The Bill hasn’t been published yet. It normally goes through Parliament over the winter and becomes law in the spring, before the April start dates. For comparison, last year’s Budget changes became law in the Finance Act 2026 on 18 March 2026. So expect these to become law around March 2027.
2. Some changes are made by regulations instead. The higher mileage rate above 10,000 miles, the new subsistence rates, the National Living Wage and the business rates relief all work this way. Those regulations are still to come too.
3. Some things aren’t even at the draft stage. Founders’ Relief is being consulted on until 30 November 2026. The distributions changes will only have draft law published in 2027.
4. A couple of things apply straight away. The lower Lifetime ISA penalty applies from 29 October 2026. The change to penalties on late property CGT returns applies from 28 October 2026, but it still has to be confirmed in the Finance Bill.

Details can still change before any of it becomes law. That doesn’t happen often, but it does happen. If anything in this post changes, we’ll update it.

So should you act on any of it now? Plan around it, yes. Don’t treat it as final. The exception is anything with a deadline built in. If you’re selling a business, for example, the timing around 6 April 2027 matters now, so talk to us before you sign.

The things that didn’t change are the safest part of this post. Rates that stay the same don’t depend on a new law going through.

Limited companies and directors

The headline: how you pay yourself doesn’t change.

1. Corporation tax stays at 19% on profits up to £50,000 and 25% over £250,000, with marginal relief in between.
2. Dividend tax stays at 10.75%, 35.75% and 39.35%, with a £500 allowance.
3. Employer NI stays at 15% above £5,000. The Employment Allowance stays at £10,500.
4. The personal allowance stays frozen at £12,570.

So a £12,570 salary with the rest as dividends is still the starting point for most one-person companies in 2027/28. Run your own numbers on our salary or dividends calculator.

What’s set to change:

1. Profit extraction “schemes” are being targeted. The rules on how money paid out of companies to individual shareholders is taxed are being modernised from April 2028, with draft law due in 2027. The government says the aim is to stop complex arrangements that take profits out at lower tax rates. Genuine changes of ownership, including passing a family business down, keep their capital treatment. If you’re planning a restructure, a share buyback or bringing in a holding company, talk to us before 2028, not after.
2. Capital allowances. The first-year allowance on main rate plant and machinery is set to go from 40% to 50% from 1 January 2027. The writing-down allowance on your main pool is set to drop from 14% to 12% from April 2027. For most small companies this changes nothing. The £1m Annual Investment Allowance still covers almost everything you buy, and companies still get 100% full expensing on new kit.
3. Company cars and vans are moving onto payroll from 6 April 2027, along with fuel and medical cover. Benefits will be taxed through your payslip every month instead of on a P11D after the year end. Most other benefits follow in April 2028.
4. R&D claims: the claim notification form is set to go for claims made from 1 April 2027.

One thing worth knowing: cash sitting in your company earns interest taxed at corporation tax rates. The new 24% to 49% savings rates would only hit interest you earn personally.

Property: landlords, property companies and developers

This is where the Budget really bites.

Landlords who own property personally:

From 6 April 2027, rental profits are set to be taxed at 24%, 44% and 49%. That’s up from 20%, 40% and 45% today. Last year’s Budget had already set them at 22%, 42% and 47%. This one added another 2 points on top. It applies in England, Wales and Northern Ireland.

In plain numbers, every £10,000 of taxable rental profit would cost you £400 more a year, whichever band you’re in.

“So should I move my properties into a company?” Maybe. But not because of a headline. A company still pays 19% to 25% corporation tax, so the gap has widened. Moving properties in can trigger stamp duty and CGT, though, and taking money back out has its own tax cost. It’s a property by property calculation, and we’re happy to run it.

Property companies: corporation tax doesn’t change, and there are no changes to stamp duty rates.

Developers:

1. From 1 April 2027, land sold to registered social housing providers is set to be zero-rated for VAT.
2. If you’re late filing a 60-day CGT return on a UK property sale, the penalties will stop growing once the sale is reported on your tax return. This applies from 28 October 2026.

Still coming (already announced):

1. Making Tax Digital for landlords and sole traders with qualifying income over £30,000 in 2025/26 starts on 6 April 2027. If you join then, HMRC won’t give out penalty points for late quarterly updates in your first year. Over £50,000 in 2024/25, you’re already in. Over £20,000 in 2026/27, you join in April 2028. Check where you stand with our MTD checker.
2. The council tax surcharge on homes worth £2m or more is due to start in April 2028.

Business expenses and mileage

1. Mileage rates are set to go up. The government says 55p a mile for the first 10,000 business miles will stay permanently. From 6 April 2027, miles above 10,000 are set to go from 25p to 35p. Drive 15,000 business miles a year and that’s £500 more you can claim, or have your company pay you tax free. It applies to sole traders using the simplified mileage rate too.
2. Subsistence rates for employees are set to go up from 6 April 2028. Employers will be able to pay £20 for trips over 5 hours, £60 over 10 hours and £75 over 24 hours without checking receipts.
3. Employees claiming their own work expenses won’t need a tax return just to claim over £2,500 from April 2028. It can all go through PAYE.
4. Equipment: see capital allowances above. The £1m Annual Investment Allowance doesn’t change.
5. Fuel duty: the 5p cut is set to be extended to 30 June 2027.

What didn’t change: the rules on what’s allowable. If it was a business expense before the Budget, it still is.

VAT

Very little is changing, and the threshold stays at £90,000. Deregistration stays at £88,000. Rates stay at 20%, 5% and 0%.

What’s set to change:

1. Energy-saving materials go back to 5% VAT from 1 April 2027. The 0% rate for installing heat pumps, solar panels, insulation and similar in homes was always due to end then, and the Budget didn’t extend it. Installers, price your 2027 jobs accordingly. Heat batteries are added to the relief from the same date.
2. Services bought from overseas. From April 2027, the reverse charge is set to apply only if you’re VAT registered. If you’re not, the overseas business selling you the service will have to charge you UK VAT. The government is calling this closing a loophole, so if you’re unregistered and buy services from abroad, expect some of those bills to go up by 20%. If you’re VAT registered, nothing changes.
3. Selling on online marketplaces. From October 2027, platforms will collect the VAT on sales by UK VAT-registered sellers, and by unregistered sellers making over £90,000 a year on that platform.
4. Taxis and private hire. From January 2028, large private hire operators are set to charge VAT on the full fare. Smaller operators are protected by a threshold.
5. From April 2029, you’ll have to pay VAT and PAYE by Direct Debit, with some exceptions.

CIS and construction

No changes to CIS in this Budget. There’s nothing in the Budget documents on CIS, gross payment status or the domestic reverse charge.

The change already in force is the one to watch. Nil returns are back. Since 6 April 2026, contractors have to file a CIS return every month, even when nobody was paid, unless you tell HMRC in advance. Miss one and you’re into late filing penalties.

The Budget does affect trades indirectly. The higher mileage rate helps. The end of 0% VAT on energy-saving materials in April 2027 is one to plan around if you fit heat pumps, solar or insulation. And if you’re a CIS subcontractor having 20% taken off, your tax return is still the only way to get any overpayment back.

Employers and payroll

1. The National Living Wage is set to go up 3.9% to £13.21 an hour from 1 April 2027. The 18 to 20 rate is set to go to £11.27.
2. Employer NI and the Employment Allowance don’t change.
3. Benefits move onto payroll: company cars, vans, fuel and medical from April 2027, most others from April 2028.
4. The £2,000 cap on NI-free pension salary sacrifice still starts on 6 April 2029, as announced last year.
5. Business rates: from 1 April 2027, retail, hospitality and leisure properties in England are set to get full Small Business Rates Relief up to £18,000 of rateable value, up from £12,000. The relief then tapers to nothing at £21,000, up from £15,000. That takes around 70,000 more businesses out of business rates altogether. It runs until March 2029 and doesn’t cover other types of property.

Sole traders and side income

1. The trading allowance is set to triple from £1,000 to £3,000 from 6 April 2027. If your trading income is £3,000 or less a year before expenses, it would be tax free and you wouldn’t need a tax return for it. The £1,000 property allowance hasn’t changed.
2. Self assessment payments change from April 2029. If you pay on account, you’ll be asked to pay more regularly through the year instead of in two big lumps. HMRC says it’ll be automated, with an option to pay through PAYE.
3. Self-employed fathers and partners will be able to get parental pay for the first time, from April 2029.

Selling your business

1. The Business Asset Disposal Relief limit is set to be halved. For sales from 6 April 2027, only the first £500,000 of lifetime gains gets the 18% rate, down from £1m. Past claims count towards it. Above that, normal CGT rates apply, usually 24%. On a £1m gain, that’s up to £30,000 more tax. There are special rules for contracts signed before 6 April 2027 that complete afterwards, so speak to us before you sign anything.
2. New Founders’ Relief. A proposed 10% CGT on up to £10m of lifetime gains, from 6 April 2027. It’s aimed at founders and early investors in “sustained high growth” companies, and the conditions are still being consulted on. For most owner-managed businesses, it won’t apply.

If a sale is on the cards in the next 12 months, talk to us now.

You personally

1. Income tax on wages, profits and pensions stays at 20%, 40% and 45%. The thresholds stay frozen, so more of your income gets dragged into higher bands every year. The £100,000 tax trap is still there: check it with our £100k calculator.
2. Savings interest over your personal savings allowance is set to be taxed at 24%, 44% and 49% from April 2027. The allowance itself is unchanged at £1,000 for basic rate and £500 for higher rate taxpayers.
3. Cash ISAs: the planned cut to the cash ISA limit is reversed. It stays at £20,000.
4. Lifetime ISA: the penalty for buying a home over the £450,000 cap falls from 25% to 20%, from 29 October 2026. A First Time Buyer ISA replaces it for new savers from April 2029.
5. Pensions: the £60,000 annual allowance doesn’t change.
6. Inheritance tax: no change to the rates or allowances. Pensions still come into your estate from April 2027, as already announced.

Key dates

These are the start dates the government has announced. Most still need the Finance Bill or regulations to become law, expected around March 2027 for the Finance Bill.

What to do now

1. Landlords: get a 2027/28 projection so the jump doesn’t land as a surprise, and check if you’re in MTD from April.
2. Directors: carry on, but check your salary and dividends every year. Don’t let them run on autopilot.
3. Thinking of selling or restructuring: talk to us before April 2027 for BADR, and before April 2028 for the distributions rules.
4. Installers: VAT on energy-saving materials goes back to 5% from 1 April 2027. Build that into your quotes now.
5. Everyone who drives for work: keep a proper mileage log. The rates are set to get better.

Frequently asked questions