The Chancellor presented the Autumn Budget on 28 October 2026. The measures announced were relatively targeted, with some areas of policy left for future fiscal events and the 2027 Spending Review.

This document is not a full summary of all the provisions announced, rather a focus on some of the key points.

The full HM Treasury Budget document can be found here: https://www.gov.uk/government/publications/budget-2026-document

There are extensive Government notes on the proposals which can be found here: https://www.gov.uk/government/collections/budget-2026-in-full

Please do not hesitate to contact us if you have detailed queries, or are looking to act on any points raised.

Energy Costs

The headlines surrounded the various measures to assist with the ongoing cost-of-living pressures.

A £100 Household Energy Payment is expected to be available to eligible households in Council Tax Bands A to D in England. The temporary 5p-per-litre reduction in fuel duty has been extended to 30 June 2027, and the temporary 0% VAT rate for domestic electricity has been extended to July 2027. The Government has also announced that domestic gas standing charges will be removed, with the detailed implementation and timing to follow.

For employees and the self-employed, the approved mileage allowance payment rate of 55p per mile for the first 10,000 business miles will be made permanent. The rate applying above 10,000 business miles will increase from 25p to 35p per mile from 6 April 2027.

Supporting enterprise

The trading and miscellaneous income allowance, together with the Self Assessment reporting threshold, will increase from £1,000 to £3,000 from 6 April 2027.

The Government has also announced support for younger entrepreneurs, including an allowance intended to assist with living costs during the first year of a new business. Further detail will be required before the scope and practical effect of the measure can be assessed.

Changes are planned to the Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP) regimes. From 6 April 2027, CSOP is expected to be renamed Enterprise Management Incentives 2 (EMI2), with a higher individual option limit and a longer exercise period. Separate administrative changes are also proposed for EMI.

Supporting workers

From 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 an hour. Separate increases will apply to the National Minimum Wage rates for younger workers and eligible apprentices.

The Government has announced a Parental Allowance for eligible self-employed individuals from April 2029. Further detail on eligibility and administration is expected.

Business investment

The full expensing regime for qualifying company expenditure will continue. The Annual Investment Allowance will also remain available to qualifying businesses.

The main-rate first-year allowance will increase from 40% to 50% for qualifying expenditure incurred on or after 1 January 2027. The main-pool writing-down allowance will reduce from 14% to 12% from 1 April 2027 for corporation tax and 6 April 2027 for income tax.

Investment income

The 2025 Autumn Budget announced a 2 percent increase in the rate of income tax on savings and property income from 6 April 2027. This is extended by a further 2 percent. From April 2027 the basic rate on this income will be 24%, the higher rate 44% and the additional rate will be 49%.

No corresponding changes were announced to the rates applying to employment, trading or dividend income.

The proposed restriction to the amount that could be held in a cash ISA from April 2027 will not proceed. The existing annual ISA limit of £20,000 will remain.

A new First Time Buyer ISA is expected to be introduced from April 2029 and to replace the Lifetime ISA for new savers. Further detail will be relevant when comparing the new product with existing arrangements.

Capital Gains Tax

The lifetime limit for Business Asset Disposal Relief will reduce from £1 million to £500,000 for disposals made on or after 6 April 2027. The applicable Capital Gains Tax rate is expected to remain at 18%.

Following consultation, a new Founders’ Relief is expected to apply from 6 April 2027 to qualifying disposals by founders and early investors in certain high-growth, innovative companies. The proposed relief would provide a 10% Capital Gains Tax rate on up to £10 million of lifetime qualifying gains. The detailed conditions remain subject to consultation and legislation.

VAT

From April 2027, the business-to-business reverse charge for certain services supplied by overseas businesses is expected to be restricted to supplies received by UK VAT-registered businesses. Where the UK customer is not VAT registered, the overseas supplier may be required to charge UK VAT and, where necessary, register for UK VAT.

Tax administration

A number of earlier proposals have been confirmed.

The Government has recommitted to mandatory VAT e-invoicing from April 2029. An implementation roadmap has been published, although the detailed requirements will be set out in subsequent regulations.

From April 2029, it is expected that it will become compulsory to set up Direct Debit arrangements in relation to VAT and PAYE liabilities, subject to some exceptions. Alternative payment methods are expected to remain available, although earlier payment deadlines may apply.

From April 2029, individuals who make Self Assessment payments on account are expected to make smaller, more frequent automated payments during the year, with an option to pay through PAYE where applicable.

The extension of Making Tax Digital for Income Tax to individuals with qualifying income above £30,000 from April 2027 has been confirmed. Those brought into scope in 2027/28 are not expected to receive late-submission penalty points for quarterly updates during their first year.

The previously proposed reporting requirements for certain payments and transactions between companies and their participators will not proceed.

From October 2027, the VAT responsibilities of online marketplaces are expected to extend to certain sales made by UK businesses. The measure is expected to apply where a business has annual sales of £90,000 or more through a platform, subject to exclusions and the detailed legislation.

For R&D tax relief claims made on or after 1 April 2027, the claim notification form is expected to be removed. The additional information form is also expected to be simplified from autumn 2027.