Chancellor John Healey delivered the Autumn Budget 2026 on 28 October 2026. There were no changes to the main rates of Income Tax, National Insurance or dividend tax, but landlords, sole traders and employers in Slough face important changes from April 2027.
This guide sets out the key announcements and what they mean for local businesses and households.
Autumn Budget 2026 at a Glance
| Change | From | Who it affects |
|---|---|---|
| Trading allowance rises from £1,000 to £3,000 | 6 April 2027 | Sole traders and side earners |
| Property income tax rates rise to 24% / 44% / 49% | April 2027 | Landlords |
| Savings income tax rates rise by 2% | April 2027 | Savers |
| National Living Wage rises to £13.21 an hour | 1 April 2027 | Employers |
| Business Asset Disposal Relief limit cut to £500,000 | 6 April 2027 | Business owners selling up |
| New Founders’ Relief at 10% | 6 April 2027 | Founders of growing companies |
| First-year allowance rises from 40% to 50% | 1 January 2027 | Companies buying equipment |
| Small business rates relief threshold rises to £18,000 | April 2027 | Retail, hospitality and leisure |
| 0% VAT on household electricity extended | To 1 July 2027 | Households |
What Did Not Change
- Income Tax rates: 20%, 40% and 45% stay the same.
- Personal Allowance: stays at £12,570, with thresholds frozen until April 2031.
- National Insurance: no change to employee, self-employed or employer rates.
- Dividend tax: rates stay at 10.75%, 35.75% and 39.35%, with a £500 allowance.
- Corporation Tax: 19% and 25% rates unchanged, with the main rate capped at 25% for this Parliament.
- VAT: no change to the 20% rate or the £90,000 registration threshold.
Because the thresholds stay frozen, more people will move into higher tax bands as their pay rises. Anyone earning close to £100,000 should read our guide to the £100k tax trap.
Landlords: Higher Tax on Rental Profits
This is the biggest change for many of our clients in Slough, Langley and the surrounding area.
From April 2027, property income will be taxed at separate, higher rates:
| Taxpayer band | Rate today | Rate from April 2027 |
|---|---|---|
| Basic rate | 20% | 24% |
| Higher rate | 40% | 44% |
| Additional rate | 45% | 49% |
A basic-rate landlord with £10,000 of rental profit would pay around £400 more tax each year.
Combined with the existing Section 24 restriction on mortgage interest, this makes structure more important than ever. Some landlords may benefit from reviewing whether a limited company makes sense for future purchases. Read our guide to Section 24 landlord tax or see our accounting services for landlords.
Sole Traders: Trading Allowance Triples
The trading allowance will rise from £1,000 to £3,000 from 6 April 2027.
This means you can earn up to £3,000 a year from self-employment or side income without needing to register or pay tax on it. Above that level, you can deduct £3,000 instead of your actual expenses, if that gives a better result.
This is good news for people with small side businesses, such as online selling, tutoring or occasional freelance work. If your income is above the limit, read our guide on how to register as self-employed.
Employers: Higher Wage Bills
From 1 April 2027, minimum pay rates rise by 3.9%:
| Rate | From 1 April 2027 |
|---|---|
| National Living Wage (21 and over) | £13.21 an hour |
| 18 to 20 | £11.27 an hour |
| 16 to 17 and apprentices | £8.31 an hour |
Employers should also prepare for:
- Payrolling of benefits in kind, which becomes mandatory from April 2027
- Salary sacrifice changes from April 2029, when pension contributions above £2,000 a year lose their National Insurance exemption
Our payroll services in Slough can update your rates and systems ahead of April.
Limited Companies: Capital Allowances and Exit Planning
Corporation Tax rates did not change. Read our guide to Corporation Tax rates and thresholds for the current rules. But there are changes to reliefs:
- First-year allowance on main-rate plant and machinery rises from 40% to 50% for spending from 1 January 2027.
- Writing-down allowance on the main pool falls from 14% to 12% from April 2027.
- Business Asset Disposal Relief will apply only to the first £500,000 of lifetime gains, down from £1 million, from 6 April 2027.
- A new Founders’ Relief will tax qualifying gains at 10%, up to £10 million, for founders of high-growth companies.
If you are planning to sell your business in the next few years, the BADR change could cost up to £70,000 in extra tax on larger gains. It may be worth reviewing your timing before April 2027.
Small Businesses and the High Street
- Small business rates relief for retail, hospitality and leisure properties in England: full relief up to £18,000 rateable value, tapering to £21,000, from April 2027.
- Pubs and live music venues get extra relief, taking the total to 35%.
- Online marketplaces must collect VAT on sales by UK businesses selling over £90,000 through them, from October 2027.
- The approved mileage rate will rise to 55p a mile for the first 10,000 business miles, and 35p after that, introduced in stages.
Households
- 0% VAT on household electricity is extended to 1 July 2027.
- A £100 Household Energy Payment will go to homes in council tax bands A to D in England from January 2027.
- A High Value Council Tax Surcharge will apply from April 2028 to homes worth £2 million or more.
What Should You Do Now?
- Landlords: review your rental profits and structure before April 2027.
- Business owners planning to sell: check whether to act before the BADR limit falls.
- Employers: budget for the new wage rates and prepare for payrolling benefits.
- High earners: review pension contributions before 5 April to manage the frozen thresholds.
Many of these measures still need to pass through the Finance Bill, so some details may change. You can read the House of Commons Library briefing on the Budget for more background.
Frequently Asked Questions
Did the Autumn Budget 2026 change income tax?
No. Income Tax rates stay at 20%, 40% and 45%, and the Personal Allowance stays at £12,570. The thresholds remain frozen until April 2031.
When does the £3,000 trading allowance start?
The trading allowance rises from £1,000 to £3,000 from 6 April 2027. Until then, the £1,000 limit applies.
How much more tax will landlords pay?
From April 2027, rental profits will be taxed at 24%, 44% or 49%, depending on your tax band. That is 4% more than today in each band.
What is the new National Living Wage?
From 1 April 2027, the National Living Wage for workers aged 21 and over rises to £13.21 an hour.
Did Corporation Tax change in the Budget?
No. The 19% small profits rate, the 25% main rate and marginal relief all stay the same.
Speak to an Accountant About the Budget
Every business and household is affected differently. Our ACCA-regulated team in Slough can review your position and help you plan before the April 2027 changes take effect.
Contact Direct Assist Accountants or call 020 3633 2018 to speak to our accountants in Slough.