The Autumn Budget 2026 was announced on Wednesday 28 October, with Chancellor John Healey outlining a series of measures aimed at easing financial pressures on households and businesses.
With inflation, energy costs and economic uncertainty continuing to cause concern, this year’s Budget was presented as an opportunity to provide some breathing space.
There weren’t many sweeping changes, but there were several announcements worth paying attention to, particularly if you’re running a business, employing staff or planning your finances for the year ahead.
From higher savings taxes to changes in business allowances and employment costs, here’s our roundup of the key announcements.
Income Tax, Savings and Property Income
The Personal Allowance will remain frozen at £12,570 until April 2031. While that might not sound like a change, it means more of your earnings could become taxable as your income increases.
Scottish income tax rates and bands for 2027/28 are still to be announced, with further details expected in December’s Scottish Budget.
There are also changes ahead for people earning interest on their savings.
From April 2027, savings income tax rates will rise to 24%, 44% and 49%, depending on your tax band. The Personal Savings Allowance will remain unchanged, so many people will still be able to earn some interest without paying tax.
For Scottish landlords, the position on property income tax is less clear. The rates that will apply from April 2027 have yet to be confirmed.
Dividend tax rates, meanwhile, will remain unchanged.
We’ve covered these changes in more detail in our article, Autumn Budget 2026: Income Tax & Savings Changes.
Business Tax Changes for SMEs and the Self-Employed
There was some welcome news for people earning smaller amounts through self-employment or side businesses.
From April 2027, the trading allowance will increase from £1,000 to £3,000. This means more people earning a modest amount from freelance work or other trading activities could benefit from tax relief and simpler reporting requirements.
Corporation Tax rates will stay the same, but there are changes to the tax relief businesses can claim when buying equipment.
The main first-year allowance will increase from 40% to 50% from January 2027, while the main writing-down allowance will fall from 14% to 12% in April.
There are also plans to simplify Research and Development (R&D) tax relief claims, reducing some of the paperwork involved.
For business owners thinking about selling, the lifetime limit for Business Asset Disposal Relief will fall from £1 million to £500,000 from April 2027.
These changes could influence decisions about business investment, tax planning and future ownership.
You can find a fuller explanation in Autumn Budget 2026: Business Tax Changes
National Insurance, Minimum Wage and Employment Costs
If you employ staff, April 2027 will bring some changes to your payroll costs.
The National Living Wage will rise to £13.21 an hour for employees aged 21 and over, with increases also confirmed for younger workers and apprentices.
National Insurance rates aren’t changing, but the main thresholds will remain frozen until April 2031. As wages rise, employers could therefore find themselves paying more in National Insurance contributions.
The Employment Allowance will remain at £10,500, helping eligible businesses reduce their annual employer National Insurance bill.
There was also an announcement for businesses and individuals who use their own vehicles for work. From April 2027, the tax-free mileage allowance for journeys above 10,000 business miles will increase to 35p per mile.
We’ve explained the figures and what employers need to prepare for in Autumn Budget 2026: Employment Costs and NI
Changes to Pensions and ISAs
The Budget also brought changes for savers, pensioners and first-time buyers.
The Government has reversed its earlier plans to restrict cash ISA savings for people under 65. The annual ISA allowance will remain at £20,000.
Looking further ahead, a new First Time Buyer ISA is planned for April 2029. It will offer a 25% Government bonus to help eligible savers towards their first home.
Until then, Lifetime ISAs will continue. The withdrawal charge for buyers purchasing a property above the £450,000 limit will also reduce from 25% to 20%.
For pensioners, a new tax allowance is planned from April 2027 to help ensure that people whose income is no higher than the full new State Pension don’t have to pay income tax simply because of increases to their pension.
The full new State Pension itself will rise by 3.9% to £250.70 a week from April 2027.
Other Announcements Worth Knowing About
A few other changes are worth keeping on your radar.
VAT
The VAT registration threshold will remain at £90,000, while the threshold for deregistration will stay at £88,000.
Changes are also planned for online marketplaces, electronic invoicing and some overseas services.
Making Tax Digital and Self Assessment
There will be no penalties for late quarterly updates during 2027/28 for taxpayers required to join Making Tax Digital for Income Tax from April 2027.
Looking further ahead, the Government plans to introduce more regular payments towards Self Assessment tax bills from April 2029.
Capital Gains Tax
The main Capital Gains Tax rates and annual tax-free allowance will remain unchanged.
A new Founders’ Relief is also planned from April 2027, offering a reduced Capital Gains Tax rate for eligible founders of certain high-growth businesses.
Energy costs and fuel duty
The temporary reduction in VAT on domestic electricity will continue until July 2027, while the existing 5p fuel duty cut and freeze will remain in place until July 2027.
A £100 household energy payment has also been announced, although details of how support will be provided in Scotland are still to be confirmed.
Looking Ahead
Many of the changes announced in the Autumn Budget won’t take effect until 2027 or later, so there’s time to understand how they might affect you.
We’ll also have a clearer picture of the position in Scotland following the Scottish Budget on 3 December 2026.
In the meantime, if any of these announcements have raised questions about your business or personal finances, the AMMU team is here to help.
Get in touch with us if you’d like to talk through what the changes could mean for you.
For a more detailed look at all the announcements, you can also download our Autumn Budget 2026 Summary.