Autumn Budget – 28 October 2026
Chancellor John Healey delivered his first Autumn Budget on Wednesday 28 October 2026
Chancellor John Healey delivered his first Budget, setting out a package of measures aimed at supporting households with rising energy costs while maintaining fiscal discipline.
While the Budget contains relatively few major tax changes, there are several measures that may affect individuals, employers and business owners over the coming year.
We have reviewed the measures that could affect you and your business. If you need support with any of these upcoming changes, we’re here to guide you through them.
Rental property and savings income tax changes
Effective date: April 2027
The Chancellor has announced further increases in the tax rates for property income and savings income.
Basic rate taxpayers: rises to 24% (up from the 22% previously announced).
Higher rate taxpayers: rises to 44% (up from the 42% previously announced).
Additional rate taxpayers: rises to 49% (up from the 47% previously announced).
ISAs
Effective date: April 2027
The ISA allowance is to remain at £20,000 a year. The proposed £12,000 cap on Cash ISAs for under-65s has now been abolished, meaning under-65s can continue to save up to £20,000 in a Cash ISA each tax year.
Self Assessment tax payments
Effective date: April 2029
The Government has announced plans to reform the Self Assessment payment regime from April 2029. Many self-employed individuals, landlords and other taxpayers who currently make Payments on Account will need to pay tax more regularly throughout the year in which the income is earned.
National Minimum Wage increase
Effective date: April 2027
The Government has announced a 3.9% increase to the National Living Wage and National Minimum Wage from April 2027. Around 2.3 million workers are expected to benefit from the increase.
Pension Tax Allowance
Effective date: April 2027
A new tax-free allowance will ensure pensioners with a total income up to the full new State Pension amount do not pay Income Tax, even as State Pension payments increase.
Writing-down allowances for plant and machinery
Effective date: April 2027
The main rate writing-down allowance (WDA) for plant and machinery is scheduled to drop further, from 14% to 12%, from April 2027.
Small Business Rates Relief
Effective date: April 2027
The Government has announced an increase in the Small Business Rates Relief threshold from £12,000 to £18,000. This change will allow more small businesses to benefit from full business rates relief.
Mileage allowance rates
Effective date: April 2027
From April 2027, the Approved Mileage Allowance Payment (AMAP) rate for business mileage over 10,000 miles will increase from 25p to 35p per mile. This follows the increase in the rate for the first 10,000 business miles from 45p to 55p per mile, which took effect in April 2026. These rates apply to employees and self-employed individuals using their own vehicles for business travel.
Business Asset Disposal Relief
Effective date: April 2027
The lifetime limit for Business Asset Disposal Relief will be reduced from £1,000,000 to £500,000. This means small business owners will only benefit from the lower rate of Capital Gains Tax on the first £500,000 of qualifying disposals over their lifetime.
Founders’ Relief
Effective date: April 2027
Gains made by qualifying business founders will be subject to a new, lower Capital Gains Tax rate of 10% on the first £10,000,000 of qualifying disposals over their lifetime.
Machine Games Duty
Effective date: April 2027
The Government has announced that Machine Games Duty for higher-stakes machines will increase from 20% to 25% from April 2027.
The changes will increase the tax payable by operators of gaming machines, including those commonly found in amusement arcades, bingo halls, pubs and betting premises. Businesses operating gaming machines should review the impact of the revised rates on their profitability and pricing before the changes take effect.
How can Aston Shaw support you?
At Aston Shaw, our dedicated tax advisors are here to support you and your business, and to guide you step by step through what the Autumn Budget means for you. We’ll take the worry out of managing your taxes, and because we’re not limited to any one sector, we have the breadth of knowledge to suit you and your business.
Contact us
We are only an email or telephone call away. Email us at taxadvisory@astonshaw.co.uk or call us on 01603 616300, we will be delighted to advise and help.
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Not sure how the Budget affects you? Speak to your Client Manager, or get in touch with one of our friendly, local accountants.