Budget 2026: What does it mean for you?
On 28 October 2026, the Chancellor delivered Budget 2026.
While the headline rates of Income Tax on earnings, National Insurance and VAT remain unchanged, the Budget contains a number of important changes for individuals, landlords and business owners — many of which take effect from April 2027.
We have prepared our detailed Budget 2026 report explaining the key announcements and what they could mean for you.
31-page guide | PDF | Prepared by The Bean Counters
Some of the key changes
Higher tax on rental profits
From 6 April 2027, Income Tax rates applying to property income in England, Wales and Northern Ireland are set to rise by four percentage points.
For landlords with significant rental profits, this makes reviewing future tax liabilities and property structures increasingly important.
Business Asset Disposal Relief is changing
The lifetime limit for Business Asset Disposal Relief is due to reduce from £1 million to £500,000 for qualifying disposals from 6 April 2027.
For business owners considering a sale, retirement or succession, timing could therefore make a significant difference.
Making Tax Digital expands again
From 6 April 2027, Making Tax Digital for Income Tax will extend to sole traders and landlords whose qualifying gross income exceeded £30,000 in the 2025/26 tax year.
Affected taxpayers will need compatible software, digital records and quarterly submissions to HMRC.
Payroll changes are coming
The National Living Wage is due to increase to £13.21 per hour from 1 April 2027.
From 6 April 2027, employers will also have to payroll certain Benefits in Kind, including company cars, vans, fuel and private medical benefits.
There is more in the detail
- Income Tax rates on savings income are set to rise from April 2027.
- The cash ISA allowance remains at £20,000.
- Corporation Tax rates remain unchanged.
- VAT registration remains at £90,000.
- Changes are planned to capital allowances.
- Unused pension funds are expected to form part of an estate for Inheritance Tax purposes from April 2027.
- Business rates changes have been announced for certain retail, hospitality and leisure businesses.
- Mandatory e-invoicing for VAT-registered businesses is planned from April 2029.
The important date is April 2027
Many of the Budget changes do not take effect immediately.
That gives individuals and businesses some time to consider their position before April 2027.
It may be particularly worth reviewing your position now if you:
- own a business that you may sell in the next few years;
- receive significant rental or savings income;
- will be brought into Making Tax Digital from April 2027; or
- employ staff or provide company benefits.
The right action will depend on your individual circumstances, so please speak to us before making decisions purely on the basis of the Budget announcements.
Get our full Budget 2026 report
Our full 31-page report looks at the Budget in more detail, including the changes affecting employees, business owners, company directors, landlords, savers and those planning for the future.
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Want to know what the Budget means for you?
Every tax position is different. If you would like to discuss how any of the Budget announcements could affect you, your family or your business, please get in touch.
Important: This article provides a general overview of selected Budget 2026 announcements and should not be treated as personalised tax advice. Many measures still require legislation or further consultation and may change before taking effect. Please contact us for advice based on your individual circumstances.