News
Autumn Budget 2026: key takeaways from our Budget Briefings
05 Nov 2026
Thank you to everyone who joined us at our Budget Briefings in Shrewsbury, Northwich, Newtown and Nantwich on 2 and 3 November. It was great to see so many familiar faces, and some new ones too.
For anyone who couldn’t make it, or who would like a reminder, here is a summary of the main points from the sessions. You can also download the full slide deck, which includes the worked examples we went through on the day.
Savings, investments and property income
From 6 April 2027, the tax rates on savings income and property income each rise by 4 percentage points. Dividend tax rates stay where they are.
| Income tax band | Savings and property income now | From April 2027 | Dividends (no change) |
|---|---|---|---|
| Basic rate | 20% | 24% | 10.75% |
| Higher rate | 40% | 44% | 35.75% |
| Additional rate | 45% | 49% | 39.35% |
The £500 dividend allowance and the £1,000 property allowance are unchanged. The property income changes do not apply in Scotland.
Cash ISAs. The planned £12,000 cap on cash ISAs from April 2027 has been cancelled. Cash and stocks and shares ISAs continue to share one £20,000 annual allowance. The government will also explore an incentive for first-time stocks and shares ISA investors.
Personal Savings Allowance. Basic rate taxpayers can still earn £1,000 of savings interest tax-free each year, and higher rate taxpayers £500. Additional rate taxpayers receive no allowance. This applies to interest on savings held outside an ISA.
Starting rate for savings. The £5,000 starting rate band stays. It lets you earn up to £5,000 of savings interest at 0% where your other income is low. The band reduces £1 for £1 once non-savings income goes above the £12,570 personal allowance, and disappears once it reaches £17,570. With the higher savings rates coming in, this band is worth a fresh look. For example, a company director taking a £12,570 salary and £6,000 of interest on a directors’ loan account could receive £18,570 tax-free.
Buy-to-let landlords. With individual rates on property income rising to 24%, 44% and 49%, more landlords may consider holding property through a company. Companies pay corporation tax of 19% on profits up to £50,000 and 25% on profits over £250,000, and get a full deduction for mortgage interest rather than basic rate relief only. Incorporating has its own costs and tax consequences, so please talk to us before making any changes.
State Pension and the new Pension Tax Allowance
The full new State Pension rises to £13,036.40 for 2027-28. Under the triple lock it increases by the highest of 2.5%, CPI inflation (3.5%) or earnings growth (3.9%), so earnings growth sets this year’s rise.
From April 2030 the triple lock will be adjusted. The earnings element becomes the amount needed to keep the State Pension’s value steady relative to earnings, which the government says will make the State Pension more sustainable in the long run.
Why this matters for tax. The personal allowance is still £12,570, so the full new State Pension is now £466.40 above it. Pensioners whose only income is the State Pension would have owed a small amount of tax for the first time.
To deal with this, a new Pension Tax Allowance applies from April 2027:
- It gives relief at 20% on the State Pension above the personal allowance, worth up to £93.28 a year (£466.40 × 20%).
- It tapers away by £1 for every £3 of total income above £13,036.
- It runs out completely once income reaches around £13,319, meaning about £283 of other income is covered.
- It is temporary, applying for three years to 2029-30.
So someone receiving the full State Pension and nothing else pays no tax. Someone with a little extra income, such as a part-time salary or some rental income, will see the allowance shrink as that income rises.
The allowance also means the government doesn’t have to raise the personal allowance straight away. It could pave the way for an increase to the personal allowance in 2030.
The starting rate for savings interacts with this too. Someone on the full State Pension has £466 of their £5,000 starting rate band used up, leaving £4,534 of savings interest that could be taxed at 0%.
Capital Gains Tax and business owners
Capital Gains Tax rates stay at 18% for basic rate taxpayers and 24% for higher rate taxpayers.
Business Asset Disposal Relief (BADR). From April 2027 the lifetime limit halves to £500,000. The 18% rate is unchanged, a 6% saving against the higher rate, so the most the relief can now save is £30,000.
Founders’ Relief. A new Capital Gains Tax relief arrives for founders and significant early investors who sell shares in UK trading companies. Qualifying gains will be taxed at 10%, up to a lifetime limit of £10 million, on disposals from 6 April 2027. The relief is subject to a consultation closing on 30 November 2026.
The proposed conditions are demanding. The individual must have:
- held at least 25% of the ordinary shares since the trade began
- held the shares for at least five years
- been UK tax resident for at least five continuous years before the sale
The company must be subject to UK corporation tax, still be trading with no significant investment or excluded activities, and have at least 15 employees and turnover of £10 million or more in the accounting period before the sale.
It must also pass two of three growth and innovation tests:
| Test | What it requires |
| Turnover | Average compound turnover growth of 25% a year over three consecutive accounting periods in the ten years before the sale, starting from at least £10m |
| Headcount | Average compound growth of 25% a year in full-time equivalent employees over three consecutive periods in the ten years before the sale, starting from at least 15 |
| Innovation | At least £1.5m of qualifying R&D spend, with R&D tax relief claimed, in periods ending in the three years before the sale |
In practice, 25% a year for three years means growing by around 95% overall, for example from £10m to about £19.5m in turnover. Because the growth can fall anywhere in the ten years before the sale, a business that grew strongly and has since levelled off may still qualify.
Share schemes. The Company Share Option Plan (CSOP) becomes EMI 2 from 6 April 2027. The individual options limit doubles from £60,000 to £120,000 and the exercise period extends from 10 to 15 years. Unlike EMI, which has a £250,000 limit, EMI 2 has no trade or size conditions, so it remains open to larger companies.
Employers, capital allowances and vehicles
National Minimum Wage. All rates rise by 3.9% from 1 April 2027.
| Age group | 2026 rate | From 1 April 2027 | Annual increase (full-time equivalent) |
| 21 and over (National Living Wage) | £12.71 | £13.21 | £910 |
| 18 to 20 | £10.85 | £11.27 | £874 |
| Under 18 | £8.00 | £8.31 | £645 |
| Apprentice | £8.00 | £8.31 | £645 |
National Insurance for 2027-28. Employers pay 15% above the £5,000 secondary threshold. For employees, the Lower Earnings Limit is £6,916 and the primary threshold stays aligned with the £12,570 personal allowance.
Capital allowances. The main rate first-year allowance increases from 40% to 50% from January 2027. The main rate writing down allowance falls from 14% to 12% from April 2027. The £1m Annual Investment Allowance and full expensing for companies both continue unchanged.
The 100% first-year allowance for new and unused electric cars is due to end on 31 March 2027 (companies) or 5 April 2027 (unincorporated businesses). The Budget didn’t mention extending it, so if you are planning to buy an electric car through the business, the timing is worth thinking about now.
Electric vehicle mileage charge. From 1 April 2028, electric cars will pay a new mileage-based charge of 3p a mile alongside Vehicle Excise Duty, with plug-in hybrids paying 1.5p a mile. Drivers will give a mileage reading at renewal and estimate their mileage for the year ahead, with MOT data used to check. There may also be an option to send readings automatically from the car.
Approved Mileage Allowance Payments. From April 2027, the rate above 10,000 miles rises from 25p to 35p a mile. The 55p rate for the first 10,000 miles, increased in May 2026, stays. Passenger, motorcycle and bicycle rates are 5p, 24p and 20p a mile.
Company cars. Benefit in kind rates are 10% for electric cars (rising by 1% a year from 2030), broadly 20% for hybrids and up to 40% for petrol and diesel. Remember that payrolling of benefits in kind becomes mandatory from April 2027.
Trading allowance. From April 2027 the trading allowance triples from £1,000 to £3,000. If your trading income is below £3,000 you won’t need to declare it, and you can choose between claiming the allowance or deducting your actual expenses. Selling your own clothes or unwanted items doesn’t count as trading.
Paying HMRC: changes from April 2029
Payments on account. From April 2029, Self Assessment payments on account will move to smaller, more regular payments, likely monthly. Payments will be automated, with the option to collect them through PAYE for people with enough employment or pension income. Amounts will still be based on the previous year’s tax bill. It should make budgeting easier, but keep an eye on cashflow in the year of change.
VAT and PAYE by Direct Debit. Also from April 2029, businesses will need to set up a Direct Debit for VAT and PAYE liabilities. Other payment methods can still be used up to a set cut-off date, after which the Direct Debit will collect any unpaid balance.
VAT e-invoicing. Mandatory VAT e-invoicing starts on 1 April 2029, using Peppol as the UK’s core framework. The road to get there:
- Now to October 2027: the government develops the detailed design and consults on technical standards.
- October 2027 to April 2028: it publishes the key requirements, including scope, exclusions, standards and guidance.
- April 2028 to April 2029: a public information campaign runs while businesses and software providers prepare and test.
- 1 April 2029: VAT e-invoicing takes effect.
It may feel a long way off, but now is a good time to check whether your accounting software is on track.
Global markets update from WR Wealth
Scott Heaney, Senior Investment Manager at Benchmark Capital and WR Wealth, closed each session with a look at global markets. His view was that this Budget was reassuringly dull for investors. Energy prices, inflation, interest rates and global bond markets will have a much bigger effect on investments, alongside the US midterm elections, conflict in the Middle East and heavy spending on AI.
His advice for investors was simple: stay calm, think long term, diversify sensibly, and let your investment manager do the monitoring so you don’t have to react to every headline.
The value of investments and the income from them can fall as well as rise and you may get back less than you invested. Past performance is not a guide to future returns. WR Wealth is a trading style of Benchmark Financial Planning, which is an Appointed Representative of Best Practice IFA Group Limited, authorised and regulated by the Financial Conduct Authority.
Talk to us
The full slide deck has more detail and worked examples on everything above. Download the Budget Briefing slides (PDF)
If you would like to talk through how the Budget affects you or your business, get in touch with your usual WR Partners contact or call your nearest office in Shrewsbury, Northwich, Nantwich or Newtown.
This article is for general information only and does not constitute professional advice. It is based on our understanding of the Budget announcements and current HMRC practice, which may change. Please take advice specific to your circumstances before acting.
