Autumn Budget 2026: Key Takeaways
On Wednesday 28 October 2026, the Chancellor, John Healey delivered his (and Andy Burnham’s) first budget. His opening statement was…
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The Chancellor, John Healey, delivered the 2026 Autumn Budget on Wednesday 28 October 2026. He described it as a Budget for the “working people of Britain, for British businesses big and small”.
-50%
Reduction in the Business Asset Disposal Relief limit, from £1m to £500K
+200%
Increase in the trading allowance, from £1K to £3K
+50%
Increase in the small business rate relief threshold, from £12K to £18K
New Minimum Wages
£8.31
+3.9% Increase for U18s & Apprentices
£11.27
+3.9% Increase for 18-20
£13.21
+3.9% Increase for 21 and Over
New Minimum Wages
£8.31
+3.9% Increase for U18s & Apprentices
£11.27
+3.9% Increase for 18-20
£13.21
+3.9% Increase for 21 and Over
Business Compliance & Tax Timeline
January 2027
Bank Surcharge: Bank Corporation Tax Surcharge rises from 3% to 6% for 15 months
April 2027
Employment Costs: National Living Wage rises to £13.21; 18 to 20 rate rises to £11.27; under 18 and apprentice rate rises to £8.31
April 2027
Mileage: Approved mileage rate for miles over 10,000 rises from 25p to 35p
2028
Local Tax: Mayors in England receive a share of locally generated income tax
As ever, the devil is in the detail and we’ll report our findings over the course of the next few days.
Andy Steele, Founder, 360 Chartered Accountants
Business Compliance & Tax Timeline
January 2027
Bank Surcharge: Bank Corporation Tax Surcharge rises from 3% to 6% for 15 months
April 2027
Employment Costs: National Living Wage rises to £13.21; 18 to 20 rate rises to £11.27; under 18 and apprentice rate rises to £8.31
April 2027
Mileage: Approved mileage rate for miles over 10,000 rises from 25p to 35p
2028
Local Tax: Mayors in England receive a share of locally generated income tax
Businesses should calculate the impact on wage costs as a matter of urgency and decide on a strategy to minimise impact on the bottom line.
Andy Steele, Founder, 360 Chartered Accountants
New Founders Relief
A new Founders Relief will apply a 10% rate of Capital Gains Tax on up to £10m of gains. Full details are still to be confirmed, but it could replace Business Asset Disposal Relief, whose limit is being cut from £1m to £500K.
New Founders Relief
A new Founders Relief will apply a 10% rate of Capital Gains Tax on up to £10m of gains. Full details are still to be confirmed, but it could replace Business Asset Disposal Relief, whose limit is being cut from £1m to £500K.
New vs Current
New |
Current |
|
|---|---|---|
Business Asset Disposal Relief Limit |
£500K |
£1m |
Trading Allowance |
£3K |
£1K |
Mileage Rate (Over 10,000 Miles) |
35p |
25p |
Trusted Hull Accountants
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Top Tips:
Budget now for the April 2027 wage increases.
Check your mileage policy before the new 35p rate kicks in.
Selling your business? Keep an eye on the new Founders Relief and cut in BADR.
Landlords should speak to their accountant about structuring their affairs tax efficiently.
Speak to your accountant about the timing of investments in machinery, IT, vans etc so you don’t fall foul of the new Capital Allowance rates.
Speak to an IFA about ISAs, LISAs and the new First Time Buyer ISAs.
Previous budget information
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Autumn 2026 Budget FAQs
The Chancellor, John Healey, delivered the 2026 Autumn Budget on Wednesday 28 October 2026. It was his first Budget since being appointed Chancellor in July 2026.
The Chancellor said the Budget keeps the government’s promise not to raise taxes on working people. However, tax on rental and savings income will rise by a further 2% from April 2027, on top of the 2% increase announced in last year’s Budget.
The main changes include a cut to the Business Asset Disposal Relief limit, a new Founders Relief, a higher small business rate relief threshold and a rise in the National Living Wage. See our full breakdown for details.