AUTUMN BUDGET 2026 SUMMARY: MORE FINE PRINT. LESS FIREWORKS

In the lead-up to his first Autumn Budget as Chancellor of the Exchequer, John Healey vowed to offer breathing space for today, fresh hope for the future, and a Budget that makes Britain more resilient. 

Expectedly big claims with Labour looking to capitalise on the latest ‘Burnham bounce’ in the polls, but did the contents of his little red box deliver? 

A flurry of smaller tweaks rather than sweeping changes meant any potential fireworks and headline tax changes fizzled out, giving way to plenty of fine print. 

That said, there are still a few sparks worth paying attention to, with genuine impact for businesses, homeowners and families. We’ve pulled out the announcements that matter most below. 

TAX, SAVINGS, PENSIONS & WEALTH 

• Property and savings income tax rates will increase by 2 percentage points from April 2027, taking the basic rate to 24%, the higher rate to 44% and the additional rate to 49%. 

• A new pensions tax allowance will be introduced from April 2027, ensuring pensioners with income up to the value of the full State Pension do not pay tax. 

• Capital Gains Tax (CGT) rates remain unchanged, but the lifetime allowance for Business Asset Disposal Relief (BADR) will be cut from £1 million to £500,000 from 6 April 2027. 

• A new Founders’ Relief will be introduced from 6 April 2027, offering a 10% CGT rate on up to £10 million of qualifying lifetime gains per individual. Compared with a 24% CGT rate, this could reduce the tax on a £10 million gain by £1.4 million. However, the relief will be tightly targeted, with qualifying conditions covering ownership, holding period, UK residence and the company’s growth, employment and R&D activity. 

• The trading allowance will increase from £1,000 to £3,000 from 6 April 2027, allowing people to earn more from new ventures and side hustles before paying tax. 

• No further changes to pensions were announced, with tax-free cash limits and Income Tax relief on pension contributions remaining unchanged. Unused pension funds will still become subject to Inheritance Tax as planned from April 2027. 

• The planned reduction in the Cash ISA limit has been scrapped, meaning the £20,000 annual ISA allowance will continue to apply to everyone. Cash held within Stocks and Shares ISAs will still be subject to a tax charge from April 2027. 

• A new Starter ISA will be introduced for first-time investors, with the design and details subject to industry consultation. 

• A new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029, offering a 25% Government bonus on the final account balance, up to a maximum bonus of £20,000, towards a first home worth up to £450,000. 

• Existing Lifetime ISA holders will be able to continue contributing and using their accounts under the current rules. From 29 October, the withdrawal charge when buying a property above the Lifetime ISA property cap will fall from 25% to 20%, while the charge for other unauthorised withdrawals will remain at 25%. 

• The new Your First Home Scheme will support first-time buyers purchasing a new-build property with a deposit as low as 2.5%, backed by a 20% Government equity loan that will be interest-free for five years. Income and property price restrictions will apply, with applications expected to open from February 2027. 

• The High Value Council Tax Surcharge will go ahead as previously announced, applying to properties valued at £2 million or more from April 2028. 

Want to find out more about what the Autumn Budget means for you, your money and your family’s financial future? 

Sign up to our one-hour webinar on Tuesday 17th November at 1pm, hosted by Cooper Parry Wealth and CP’s Private Client Tax team. 

TAX CHANGES FOR BUSINESSES 

• Business rates support will be expanded for the retail, hospitality and leisure sectors, with the threshold increasing from £12,000 to £18,000 from April 2027. The Chancellor says this will mean half of shops, restaurants and gyms pay no business rates. 

• Pubs, clubs and music venues will receive a 20% reduction in business rates from 1 April 2027, alongside a two-year real-terms freeze for eligible retail, hospitality and leisure businesses. 

• The Bank Surcharge will increase by 3% to 6% from 1 January 2027 to 31 March 2028, helping to fund the Government’s immediate energy support measures. 

• Machine Games Duty will increase from 20% to 25% for higher-stakes machines from 1 April 2027, as part of measures intended to help fund support for the high street. 

• The new British Industrial Competitiveness Scheme aims to cut electricity bills by 25% for 10,000 businesses from 1 April 2027, providing targeted support with energy costs. 

• Small alcohol producers will receive additional support through enhancements to Small Producer Relief from 1 February 2027, benefiting qualifying breweries, distilleries and other producers. 

• Online marketplaces will become responsible for collecting VAT on certain sales made by UK sellers from October 2027, shifting the VAT collection responsibility to marketplace operators in these cases. 

• Bare land sold to registered social housing providers will be zero-rated for VAT from 1 April 2027. 

• Larger private hire vehicle operators will be required to account for VAT on the full passenger fare from 2 January 2028, rather than only the commission they earn.  

• Businesses will be able to claim a 50% first-year capital allowance on qualifying investment, up from 40%, for expenditure incurred from 1 January 2027. 

• The Writing Down Allowance for main rate pool assets will fall to 12%, taking effect from 1 April 2027 for companies and 6 April 2027 for individuals. This follows the previous reduction from 18% to 14% in April 2026, making it increasingly important for businesses to review historic and planned expenditure. 

• The Government has published its response to the consultation on the tax treatment of pre-development costs, with potential changes to existing guidance expected to follow. 

• Following consultation, HMRC is now working up proposed legislation to provide clarity and consistency in how company owners realise value when selling their business or passing it to future generations. The rules will likely impact how these transactions are structured, but they’re not intended to materially impact shareholders’ ability to realise value at Capital Gains Tax rates. 

EMPLOYMENT & WORKERS 

• The National Minimum Wage and National Living Wage will increase by 3.9%, affecting 2.3 million workers. 

• The 55p per mile tax-free business mileage rate for the first 10,000 miles (introduced earlier this year) will now be made permanent. Meanwhile, the rate for higher mileage above 10,000 miles will increase from 25p to 35p per mile from 6 April 2027. 

• A new EMI 2 share option scheme will replace CSOP, widening access to tax-advantaged employee share incentives for larger and later-stage businesses that may not qualify for EMI. 

• EMI 2 will allow options over shares worth up to £120,000 from 6 April 2027, double the current CSOP limit. The changes could make it a more attractive way for growing and mid-market businesses to incentivise and retain key employees. 

ENERGY & COST OF LIVING ANNOUNCEMENTS 

• VAT relief on electricity will be extended to 1 July 2027, which the Chancellor says will reduce the annual energy price cap by £50. 

• Gas standing charges will be removed from 2027, or as soon as possible thereafter. 

• 20 million households in Council Tax bands A to D will receive a £100 Household Energy Payment, providing additional support with energy costs. 

• The 5p fuel duty cut and reduction in red diesel duty will be extended to 1 July 2027, continuing support for motorists and businesses. 

• Tariffs will be suspended on more than 100 imported food and consumer products, as part of measures aimed at easing everyday costs. 

OUR TAKE? 

“The Chancellor has tried to walk a pretty difficult tightrope here: put some immediate breathing space back into households and businesses without reaching for broad-based increases in the main taxes,” Adam Waller, CP’s National Head of Tax said. 

“There’s undoubtedly some good news. No CGT increase, targeted help for high streets and support with business energy costs all point towards a Government keen to tell a more pro-growth story. 

“But let’s not mistake this for a tax giveaway. Landlords and those with significant savings income will pay more, banks and parts of the gambling sector face higher taxes, and employers are being asked to absorb another increase in wage costs. 

“The important question isn’t really who wins the Budget Day scorecard. It’s whether businesses wake up tomorrow feeling more confident about investing, hiring and growing. If they don’t, making the numbers stack up becomes a lot harder.”