Autumn Budget 2026: What It Means for You and Your Business

Autumn Budget 2026: What It Means for You and Your Business

The Chancellor delivered the Autumn Budget 2026 on Wednesday 28 October 2026. The headline rates of income tax, National Insurance and VAT are unchanged, but the Budget contains a series of targeted measures that affect savers, landlords, business owners planning a sale, employers and high street businesses.

In this article, the Moore NHC tax team, based in Goffs Oak and Stevenage, Hertfordshire, sets out the main announcements from the Budget 2026 document and the accompanying Overview of tax legislation and rates. If you would like to understand how any of these changes could affect you, our team is here to help.

The economic backdrop

The Office for Budget Responsibility (OBR) published its October 2026 Economic and Fiscal Outlook alongside the Budget. Its key forecasts include:

• GDP growth of 1.2% in 2026, slowing to 1.0% in 2027 before recovering to 1.6% in 2028.
• CPI inflation peaking at 3.8% in the first quarter of 2027 and returning to the 2% target by the third quarter of 2028.
• Public sector net borrowing of 4.2% of GDP (£133.2 billion) in 2026-27, falling to 1.8% by 2030-31.
• Headroom of £15 billion against the government's stability rule in 2029-30.

For businesses, these figures are a useful reference point when preparing budgets and cash flow forecasts. Our accounts team can help you understand how the wider outlook fits with your own figures.

Personal tax: headline rates frozen, savings and property income rise

The main income tax rates of 20%, 40% and 45% are unchanged, and the personal allowance remains frozen at £12,570. The higher rate threshold stays at £50,270, according to Annex A: rates and allowances.

The most significant personal tax change concerns savings and property income

From 6 April 2027, both will be taxed at 24% (basic rate), 44% (higher rate) and 49% (additional rate). This is 2 percentage points higher than the rates announced in the November 2025 Budget. Trustees with significant savings or property income should also consider the potential impact of these changes. The savings rates apply across the UK, while the new property income rates apply in England, Wales and Northern Ireland.

Other personal tax announcements include:

• The annual cash ISA limit remains at £20,000.
• A new Pension Tax Allowance from 6 April 2027 to 5 April 2030, designed to stop pensioners whose total income is no more than the full new State Pension from being drawn into income tax.
• Capital gains tax main rates are unchanged at 18% and 24%.

Landlords and those with significant savings income will want to understand how the new rates could affect their tax bills from 2027-28. Our personal tax team can help you review your position.

Selling a business? Changes to Business Asset Disposal Relief

The lifetime limit for Business Asset Disposal Relief (BADR) will fall from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027. The £1 million limit continues to apply to disposals before that date. Relief already used counts towards the new lower limit.

The Budget also introduced a new Founders' Relief from 6 April 2027 for qualifying founders and early investors in eligible high-growth UK companies. A technical consultation on the detail closes on 30 November 2026.



If you own a business and have been thinking about your future plans, our team can help you understand how these changes may affect you.

Inheritance tax and pensions

The inheritance tax rate stays at 40%, with the nil-rate band of £325,000 and residence nil-rate band of £175,000 remaining frozen. As previously legislated, most unused pension funds and death benefits will be brought into the value of an estate from 6 April 2027, and the Budget confirmed further administrative changes to how this will operate.

Pension tax relief on contributions was left unchanged, and the annual allowance remains at £60,000. Families reviewing their estate plans can speak to our team about what the changes mean for them.

Business tax and investment

Corporation tax rates are unchanged. The main rate remains 25% for profits over £250,000, the small profits rate remains 19% for profits up to £50,000, and marginal relief continues to apply between the two. Key investment measures include:

• First-year allowance: the main-rate first-year allowance rises from 40% to 50% for qualifying plant and machinery bought on or after 1 January 2027.
• Writing-down allowance: the main-rate writing-down allowance falls from 14% to 12% from 1 April 2027 for corporation tax and 6 April 2027 for income tax.
• Full expensing: remains available for qualifying companies.
• Bank surcharge: the Bank Corporation Tax Surcharge rises temporarily from 3% to 6% between 1 January 2027 and 31 March 2028.

If you are planning capital investment over the next 12 months, our business tax team can help you understand how the new allowances work.

Employers and payroll

Employer National Insurance remains at 15% on earnings above £5,000 a year. Other changes for employers include:

• The National Living Wage rises by 3.9% to £13.21 an hour from April 2027, with the rate for 18 to 20 year olds rising to £11.27.
• The tax-free approved mileage rate for cars and vans is 55p a mile for the first 10,000 business miles, backdated to 6 April 2026 and now permanent. The rate above 10,000 miles rises from 25p to 35p from 6 April 2027.
• Company cars and vans, fuel and medical benefits must be reported through payroll from 6 April 2027, with most other benefits following from 6 April 2028.

Our payroll team can help you prepare your systems and policies for these changes.

Business rates relief for the high street

In England, from 1 April 2027, qualifying retail, hospitality and leisure properties will receive 100% Small Business Rates Relief up to a rateable value of £18,000 (up from £12,000), with tapered relief up to £21,000. The government expects this to take around 70,000 businesses out of business rates altogether. Relief for pubs, social clubs and live music venues rises from 15% to 35%, and bill increases for qualifying retail, hospitality and leisure properties will be capped at CPI inflation for 2027-28 and 2028-29.

VAT and Making Tax Digital

• The VAT registration threshold remains at £90,000.
• From October 2027, online marketplaces will collect VAT on sales by UK businesses selling more than £90,000 a year through that platform.
• Making Tax Digital for Income Tax thresholds are unchanged: over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. Those joining from 6 April 2027 will not receive penalty points for late submission of their first four quarterly updates in 2027-28, although the updates must still be filed.
• Mandatory e-invoicing for VAT invoices is planned from 1 April 2029.

The direction of travel for tax reporting and payment

The Budget continues the move towards more frequent, digital reporting and payment. From 2029, some Self Assessment taxpayers will make smaller, more regular payments in place of the current January and July payments on account, and direct debit will become the default way to pay VAT and PAYE from April 2029. HMRC will also receive 670 additional compliance officers, and a new requirement to correct errors in tax returns once discovered will apply from 1 April 2028.



Our team can help you get your records and processes ready well ahead of these deadlines.

Key dates at a glance

How Moore NHC Can Help

As part of the Moore network, one of the UK's leading accountancy and advisory networks, Moore NHC supports individuals, families and businesses across Hertfordshire and beyond from our offices in Goffs Oak and Stevenage. Following the Autumn Budget 2026, our team can help with:

• Business and corporatation tax
• Personal tax and Self Assessment
• Capital gains tax and business sales
• Inheritance tax and estate planning
• Trusts, wills, lasting powers of attorney and probate
• Payroll and employer obligations
• VAT and Making Tax Digital
• Accounts preparation, budgets and cash flow forecasting
• Audit and assurance
  

Frequently asked questions

When was the Autumn Budget 2026 announced?

The Budget was delivered on Wednesday 28 October 2026.

Have income tax rates changed?

No. The main income tax rates of 20%, 40% and 45% are unchanged, and the personal allowance remains at £12,570. However, tax rates on savings and property income will rise to 24%, 44% and 49% from 6 April 2027.

What is happening to Business Asset Disposal Relief?

The lifetime limit falls from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027.

Has the VAT threshold changed?

No. The VAT registration threshold remains at £90,000.

Who can help me understand the Budget changes?

The Moore NHC team in Goffs Oak and Stevenage can help you understand how the Autumn Budget 2026 could affect you, your family or your business

Speak to Moore NHC about the Autumn Budget 2026

Do not wait until the dust settles. If you would like to understand how the Autumn Budget 2026 could affect you, your family or your business, get in touch with Moore Northern Home Counties today.

Moore Northern Home Counties - Goffs Oak office:

East Wing, Goffs Oak House, Goffs Lane, Goffs Oak, EN7 5GE

Telephone 020 8366 4331

Moore Northern Home Counties - Stevenage office:

First Floor, 73 to 75 High Street, Stevenage, Hertfordshire, SG1 3HR

Telephone 01438 741147

Online: Email us below or by phone on 020 8366 4331 or 01438 741147

Contact us today to arrange a conversation with our team.

ARTICLE TITLE: Autumn Budget 2026: What It Means for You and Your Business

AUTHOR: Shaharan Deen - Tax Partner

DATE: 28 OCTOBER 2026

Disclaimer: This article is for general information only and reflects our understanding of the Autumn Budget 2026 announcements, published guidance and press reports as at 28 October 2026. Many of the measures described are subject to consultation and to legislation being passed by Parliament, and the final position may differ. Figures quoted from outside sources are taken from the linked publications and their accuracy is not guaranteed. This article does not constitute tax, financial, legal or other professional advice and should not be relied upon as such. You should not act, or refrain from acting, on the basis of this article without obtaining specific professional advice based on your own circumstances. Moore Northern Home Counties Limited accepts no responsibility for any loss arising from any action taken or not taken as a result of this article.