Autumn Budget Statement 2026: Overview

Chancellor John Healey delivered his first Budget on 28 October 2026. We summarise here the key announcements, and additional detail can be found for individuals and businesses.

1. Overall Context

• The Chancellor’s focus was on providing breathing space now, while paving the way for longer term energy reform.
• Tax changes include higher taxes on property and savings income and a bank corporation tax surcharge, to fund additional energy and business rate reliefs.
  
  

2. Personal Tax

• Income Tax thresholds: Basic (£37,700), Higher (£50,270), Additional (£125,140) continue to be frozen until 2031.
• Personal allowance: £12,570 frozen until 2031; tapers above £100,000.
• Property and savings income tax rises from 2027/28 (to 24%, 44%, 49%).
• Increase in personal allowance for pensioners with no income apart from the state pension, to remove their tax liability.
• Trading allowance increases from £1,000 to £3,000 from April 2027.
• ISA limits frozen until 2031; previously proposed cash ISA element cap drop from 2027 will no longer apply. First Time Buyer ISA to launch in April 2029, to give a 25% bonus.
  
  

3. Employment

• NIC rates unchanged; employer threshold stays at £5,000 until 2031.
• National Living Wage rises to £13.21/hour from April 2027.
• Mandatory payroll reporting for benefits from April 2027.
• Approved mileage payments for employees using their own car for work had already been increased retrospectively in the year from 45p to 55p, from April 2027 the rate applicable to mileage in excess of 10,000 miles will also increase from 25p to 25p.
• Extension of existing CSOP share scheme limits and redesignation as EMI2.
  
  

4. Business

• Corporation Tax: remains at 25% for large companies, 19% for small profits for the term of the Parliament.
• First-year allowance increased from 40% to 50% from January 2027; main writing-down rate drops to 12% in April 2027.
  
  

5. Capital Taxes

• CGT rates unchanged; annual exemption stays at £3,000.
• Business Asset Disposal Relief lifetime limit reduced to £500,000.
• New Founders’ Relief to be available for qualifying individuals’ disposals of qualifying shares from April 2027, giving 10% CGT rate up to £10m lifetime gains.
• Inheritance Tax bands frozen until 2031.
  
  

6. Other Measures

• VAT registration threshold remains £90,000.
• Mandatory e-invoicing for VAT from April 2029.
• High Value Council Tax surcharge from April 2028 for properties worth £2m+.
• EV “road tax” (Excise Duty) from April 2028: 3p per mile.

As always, our tax team are on hand to assist with any tax planning queries that you may have - either as a result of this year's budget announcements or on any other matter. Please contact us on tax.team@shorts.uk.com and a member of our team will be in touch.