Autumn Budget 2026: clouds for landlords and savers, steadier skies for business owners
If you own rental property, hold savings outside an ISA, or are thinking of selling your business, the next five months matter.
On 28 October 2026, Chancellor John Healey delivered his first Budget. Most of the headlines were about energy bills, but the tax picture is clearer than it first looks. Tax on income from assets, such as rent and savings interest, is going up. The main taxes on running a business are largely staying where they are.
Almost every major change starts in April 2027. That gives you a short window to plan, and planning early nearly always costs less than reacting later. Here is what changed and who it affects.
Landlords and savers: a 4 point rise from April 2027
From 6 April 2027, rental profits and savings interest will have their own income tax rates: 24% for basic rate taxpayers, 44% for higher rate and 49% for additional rate.
You may have seen this reported as a "2% rise". That is only half the story. Last year’s Budget had already set a 2 point increase for April 2027, and this Budget adds another 2 points on top. Compared with today, that is 4 points more.
What it could mean for you
| Example | Tax today | Tax from April 2027 | Extra each year |
| Higher rate landlord, £20,000 rental profit | £8,000 | £8,800 | £800 |
| Higher rate saver, £10,000 interest (after £500 allowance) | £3,800 | £4,180 | £380 |
Simplified examples, assuming all the income falls in the higher rate band.
Good to know
- Wages, self-employed profits and dividends are not affected.
- ISAs and pensions stay tax free.
- The property rates apply to landlords in England, Wales and Northern Ireland. Scotland sets its own rates.
Should you move your property into a company? Not automatically. Stamp duty and capital gains tax can apply on the transfer, and they often wipe out the saving. A review will tell you whether it makes sense for your portfolio.
Selling your business: the relief limit halves
Business Asset Disposal Relief (BADR) lets business owners pay 18% capital gains tax on a sale instead of 24%. From 6 April 2027, the lifetime amount of gains that qualify falls from £1 million to £500,000.
On a sale with a £1 million gain, that could mean up to £30,000 more tax. The government says three in four people who claim the relief will not be affected, because their gains are below £500,000.
There is also a new Founders’ relief from April 2027, with a 10% rate on up to £10 million of gains. It is designed for founders of companies backed by outside investors, so most family and owner-managed businesses are unlikely to qualify.
Thinking of selling? Start the conversation now, but don’t rush. The detailed timing rules are still to be published, and a sale agreed in a hurry can easily cost more than the tax it saves.
Business owners and employers: steady rates, a few timing points
If you run a limited company, the good news is what didn’t change. Corporation tax stays at 19% to 25%, dividend tax rates are unchanged, and so are employer National Insurance and the £10,500 Employment Allowance.
What is worth knowing:
- Buying equipment or a van? The first-year tax allowance on most plant and machinery rises from 40% to 50% for purchases from 1 January 2027. For sole traders and partnerships in particular, a few weeks’ delay could mean more tax relief.
- Wages: the National Living Wage for workers aged 21 and over rises by 3.9% to about £13.20 an hour from April 2027.
- Mileage: the 55p a mile tax-free rate for the first 10,000 business miles is now permanent. Above 10,000 miles, the rate rises from 25p to 35p from April 2027.
- Sole traders: the trading allowance triples from £1,000 to £3,000 from April 2027, helpful for side businesses with low costs.
- Making Tax Digital: if your self-employed or rental income is over £30,000, quarterly digital reporting starts on 6 April 2027. Getting your records set up now avoids a scramble in spring.
Further ahead, from 2029 Self Assessment payments on account will be split into smaller, more regular payments.
Everyone else: frozen thresholds and some cost of living help
- Income tax: the £12,570 Personal Allowance and the £50,270 higher rate threshold stay frozen, so pay rises continue to pull more people into higher tax bands.
- Pensioners: a new allowance from April 2027 means pensioners whose only income is the full new State Pension will not pay income tax.
- ISAs: the £20,000 limit stays, and the planned cut to the cash ISA limit has been scrapped.
- Capital gains and inheritance tax: no changes to rates or thresholds.
- Energy and fuel: a £100 Household Energy Payment for homes in council tax bands A to D this winter. VAT on household electricity stays at 0%, and the 5p fuel duty cut continues, both until July 2027.
- Selling online: from October 2027, marketplaces such as Amazon and eBay will collect VAT on sales by UK businesses selling more than £90,000 through them.
Book your Budget review
Budgets are easy to read about and harder to apply to your own situation. At Sydney Hudson, we explain what the changes mean for you in plain English, then help you plan before April 2027.
We can help if you:
- own rental property
- are thinking of selling your business in the next year or two
- run a company or employ staff
- need to be ready for Making Tax Digital
Get in touch: call 01234 413 094 or email admin@sydneyhudson.co.uk to book a review.
This article is a general summary of the Budget documents published on 28 October 2026. Some details are still to be confirmed in the Finance Bill. It is not personal tax advice, so please speak to us before acting.
