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Table of Contents

1. Key changes at a glance
2. Property and savings income tax rates from April 2027
3. Making Tax Digital for Income Tax from April 2027
4. Capital allowance changes
5. Capital Gains Tax: BADR and Founders' Relief
6. Trading allowance increase
7. National Living Wage and payroll impact
8. Other relevant measures
9. Implementation timeline
10. Who is most affected
11. How Doshi Accountants can support you

1. Key changes at a glance
 

The Budget raises tax on property and savings income while backing investment through a higher first-year allowance and easing some compliance rules. The main Income Tax rates, the Personal Allowance, dividend tax rates and Corporation Tax rates are unchanged.
 

2. Property and savings income tax rates from April 2027
 

From 6 April 2027 (tax year 2027-28), separate rates of Income Tax apply to property income for taxpayers in England, Wales and Northern Ireland, and to savings income across the UK. The Scottish and Welsh governments can set property income rates in line with their existing Income Tax powers.
 

Property income rates (England, Wales and Northern Ireland)

Savings income rates (UK-wide)

These rates are two percentage points higher than the 22%, 42% and 47% already set for April 2027 in the Finance Act 2026. The Budget increase still needs to be legislated in the Finance Bill 2026-27.

Individual landlords cannot deduct finance costs from rental income. Instead, they receive a tax reduction calculated at the basic rate of property income tax. Budget costings indicate this relief remains aligned to the basic property rate and will therefore rise to 24% from April 2027; confirm the precise legislative wording when the Finance Bill is published. Higher and additional rate landlords will pay tax at 44% or 49% on their profits before the finance cost deduction but will claim only 24%.

The Budget documents list no change to the £1,000 property allowance or to the Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers). The 0% starting rate for savings, up to £5,000, is also unchanged.

If you are reviewing your position under the new rates, our Property Accounts Services team can help with expense analysis, cash-flow modelling and long-term planning.

3. Making Tax Digital for Income Tax from April 2027
 

Making Tax Digital for Income Tax has applied since 6 April 2026 to sole traders and landlords with qualifying income above £50,000. The next group, with qualifying income above £30,000 in the 2025-26 tax year, joins from 6 April 2027, and the threshold falls to £20,000 from April 2028. Qualifying income is your gross self-employment and property income before expenses.

Soft landing announced at Budget 2026: HMRC will not apply late-submission penalty points to quarterly updates for the 2027-28 tax year for taxpayers who must join MTD in April 2027. You must still send your quarterly updates before you can submit your tax return, and the easement does not cover the year-end return or late payment.

Taxpayers who joined in April 2026 had their own easement for 2026-27. It does not continue into 2027-28, so penalty points can apply to their late quarterly updates from that year.

The government will also exempt some groups from MTD for Income Tax until further notice, including those eligible for qualifying care relief and non-UK resident foreign entertainers and sportspeople. Secondary legislation is due before April 2027.

Digital records and MTD-compatible software remain mandatory.

Our Bookkeeping Services and Self Assessment Tax Returns teams can help you set up compliant digital records and prepare for quarterly updates.

4. Capital allowance changes
 

• The main-rate First-Year Allowance rises from 40% to 50% for qualifying expenditure on new or unused main-rate plant and machinery incurred on or after 1 January 2027. Most companies continue to benefit from full expensing (100% first-year allowance) on qualifying main-rate assets; the higher FYA mainly helps unincorporated businesses and certain leasing arrangements. The 40% rate applies to expenditure from 1 January 2026.

  The allowance mainly benefits unincorporated businesses and some leasing businesses, because most companies can claim full expensing.
   

• The main-rate Writing-Down Allowance falls from 14% to 12% from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax.
   
• Full expensing (100% first-year allowance) for companies continues for qualifying main-rate assets.
   
• The Annual Investment Allowance remains at £1 million.
   

These changes affect investment decisions for both unincorporated businesses and limited companies.
 

Our Accounting Services and Corporation Tax Return specialists can help you model the impact.
 

5. Capital Gains Tax: BADR and Founders' Relief
 

Business Asset Disposal Relief (BADR)

The lifetime limit on gains eligible for BADR falls from £1 million to £500,000 for qualifying disposals on or after 6 April 2027. The BADR rate stays at 18%. Special provisions apply to certain contracts entered into before 6 April 2027, as well as to share reorganisations that have not been completed by that date. The government says three in four claimants will see no change.

For a higher rate taxpayer, the maximum lifetime saving from BADR (18% instead of 24%) therefore falls from £60,000 to £30,000.

Founders' Relief (proposed)

The government has announced a new Founders' Relief that would apply a 10% Capital Gains Tax rate to qualifying disposals of shares or securities on or after 6 April 2027, up to a lifetime limit of £10 million of gains per individual. It is aimed at founders and significant early investors in high-growth, innovative UK companies.
 

This is not yet law. HM Treasury's technical consultation closes on 30 November 2026, and legislation will follow as amendments to the Finance Bill 2026-27. Any BADR or Investors' Relief claimed from 6 April 2027 will reduce the £10 million limit. The proposed conditions (such as shareholding and holding period, growth and innovation tests, and UK presence) are demanding, so take advice before planning around the relief.
 

Business owners planning an exit or growth strategy should review their position. Our Accounting Services team can help with planning, and our Inheritance Tax Planning team can advise where a sale forms part of wider family wealth planning.
 

6. Trading allowance increase
 

From 6 April 2027, the Trading Allowance rises from £1,000 to £3,000, and the Self Assessment trading income reporting threshold rises to £3,000 as well. If your gross trading or miscellaneous income is covered by the allowance, you no longer need to declare it or pay tax on it. If your actual expenses are higher than the allowance, you can still choose to deduct the expenses instead.
 

If you are starting out, our Starting New Business team can help you choose between trading as a sole trader and setting up a company.
 

7. National Living Wage and payroll impact
 

From 1 April 2027:

Employer National Insurance stays at 15% above the £96 weekly secondary threshold, and the Employment Allowance stays at £10,500. Employers should still budget for higher payroll costs, and should also prepare for payrolled benefits in kind from April 2027 (see section 8).

Our Payroll Services team can calculate the impact on your wage bill and ensure RTI compliance, and our Management Accounts Services team can build the higher wage costs into your cash-flow forecast.
 

8. Other relevant measures
 

• The main Income Tax rates (non-savings, non-property, non-dividend), the Personal Allowance (£12,570) and the basic and higher rate bands are unchanged for 2027-28. Dividend tax rates are also unchanged. See our tax tables for current rates.
   
• The Corporation Tax main rate stays at 25% and the small profits rate at 19%, including the financial year beginning 1 April 2028.
   
• In England, retail, hospitality and leisure businesses occupying a single property will be eligible for 100% small business rates relief if their property's rateable value is £18,000 or less, up from the previous threshold of £12,000. The relief will gradually reduce for properties with a rateable value above £18,000 and will end at £21,000, compared with the previous threshold of £15,000. These thresholds will apply for 2027-28 and 2028-29.
   
• Share scheme changes take effect from 6 April 2027: the CSOP individual option limit rises to £120,000, the CSOP exercise period extends to 15 years, the CSOP and EMI limits no longer interact, and the EMI exercise window after a disqualifying event extends to 180 days.
   
• From 6 April 2027, the Approved Mileage Allowance Payment (AMAP) rate and the simplified mileage rate for business miles above 10,000 rise from 25p to 35p per mile.
   
• Employers must payroll for company cars, vans, car and van fuel and medical benefits through RTI from 6 April 2027. Most other benefits in kind follow from 6 April 2028.
   
• From April 2027, the VAT reverse charge on business services bought from overseas applies only if the UK business is VAT registered. Otherwise, the overseas supplier must charge UK VAT. Our Value Added Tax Services team can help you check your position.
   
• Annual Tax on Enveloped Dwellings (ATED) charges rise by 3.5% from 1 April 2027. For example, the charge for a property valued at £500,001 to £1 million rises from £4,600 to £4,750. Our ATED Return team can help with filing.
   
• From April 2029, Self-Assessment taxpayers who make payments on account will pay more regularly during the year, and VAT and PAYE return liabilities will require a Direct Debit instruction, subject to defined exceptions. Both are due to be legislated in a future Finance Bill.
   
• Most unused pension funds and death benefits come within the estate for Inheritance Tax from 6 April 2027, as already legislated in the Finance Act 2026.
   

9. Implementation timeline
 

10. Who is most affected

• Landlords: Higher property income rates and the continued restriction of finance cost relief increase tax on rental profits.
   
• Sole traders and landlords with qualifying income between £30,000 and £50,000: You must prepare for Making Tax Digital from April 2027, with a penalty soft landing on quarterly updates.
   
• Business owners planning an exit: The lower BADR lifetime limit affects larger disposals. Founders' Relief may help qualifying high-growth companies if it is enacted as proposed.
   
• Employers: The higher National Living Wage increases payroll costs from April 2027, and payrolled benefits begin for cars, vans and medical benefits.
   
• Investors with savings income: Higher rates apply from April 2027.
   

11. How Doshi Accountants can support you
 

Doshi Accountants can help you understand the impact on your finances and prepare for each change.
 

You can speak to us for support with:

• Property Accounts Services: Reviewing rental profits, allowable expenses and structure under the new rates. 
• Self Assessment Tax Returns and Bookkeeping Services: Preparing for Making Tax Digital quarterly updates and digital records. 
• Payroll Services: Calculating the National Living Wage impact and preparing for payrolled benefits. 
• Accounting Services and Corporation Tax Return: Capital allowances planning and company tax strategy. 
• Value Added Tax Services: VAT reverse charge changes and VAT compliance. 
• Management Accounts Services: Cash-flow forecasting under the new tax rates. 
• Starting New Business: Advice on structure, incorporation and growth planning. 
• Inheritance Tax Planning: Longer-term estate planning, including Inheritance Tax on pensions from April 2027. 
• ATED Return: Filing and planning for companies holding residential property.
   

You can browse more of our guides on the Articles page, or check current rates in our tax tables.
 

For a confidential consultation or a full review of how the Autumn Budget 2026 affects your business or personal finances, contact us to book an appointment.
 

Sources: HM Treasury Budget 2026 report; HMRC Budget 2026 Overview of tax legislation and rates (OOTLAR) and Annex A: Rates and Allowances; HM Treasury Founders' Relief technical consultation; House of Commons Library Budget 2026 briefing. All published 28 October 2026.
 

Important notice and disclaimer

General information only. This article has been prepared by Doshi Accountants Ltd for general information. It is not financial, tax, legal or investment advice, and it does not take account of your personal or business circumstances. Reading it does not create an accountant and client relationship between you and Doshi Accountants Ltd.
 

Position at the date of publication. The article reflects the Autumn Budget 2026 announcements and the HM Treasury and HMRC publications of 28 October 2026, as understood on 29 October 2026. Most measures are proposals that still need to be legislated in The Finance Bill 2026-27 and could change before they become law. Founders' Relief is subject to a technical consultation and may change significantly or not proceed. Dates, rates, thresholds, allowances and conditions may be amended, clarified or withdrawn. We are not obliged to update this article.
 

No reliance. Tax outcomes depend on individual facts, residence, ownership structure and the legislation in force at the time. You should not act, or refrain from acting, based on this article without taking professional advice that is specific to your circumstances. Examples and calculations are illustrative only.
 

Accuracy. We have taken reasonable care to ensure the information is accurate at the date of publication, but we give no warranty, express or implied, that it is complete, accurate or up to date.
 

Limitation of liability. To the fullest extent permitted by law, Doshi Accountants Ltd and its directors, employees and agents accept no liability for any loss or damage arising from reliance on this article. Nothing in this notice excludes or limits liability for death or personal injury caused by negligence, for fraud or fraudulent misrepresentation, or for any other liability that cannot lawfully be excluded.
 

Get advice. Please contact us or another suitably qualified adviser before making decisions about your tax affairs, and check the latest official guidance as legislation progresses.