Autumn Budget 2026 at a Glance
Changes announced on 28 October 2026 for UK property, savings, pensions and business interests.
Announced rates for taxable income from 6 April 2027.*
Announced lifetime limit for gains qualifying for Business Asset Disposal Relief from 6 April 2027; the qualifying CGT rate remains 18%.
Most unused pension funds and death benefits come into the inheritance tax calculation, under legislation already passed.
UK Property Owners
- Rental income: review the effect of the announced 24%, 44% and 49% rates on taxable profits from personally owned UK property. Companies are taxed separately.
- Mortgage interest: relief is given at the property basic rate, so 24% on the announced rates.
- High-value homes: an annual surcharge of £2,500 to £7,500 on homes in England worth £2 million or more, from April 2028.
- Missed a property disposal return? Announced changes may limit further late filing penalties where the disposal is later reported through Self Assessment. Please seek advice on outstanding returns and payments.
Business Owners and Investors
- Business Asset Disposal Relief: the lifetime limit falls from £1 million to £500,000 from 6 April 2027; the rate stays at 18%.
- Founders' Relief: a proposed 10% rate on up to £10 million of lifetime gains; conditions under consultation.
- Capital allowances: first-year allowance 50% (was 40%); writing-down allowance 12% (was 14%), from 2027.
- EMI2: CSOP becomes EMI2; the option limit doubles from £60,000 to £120,000 from 6 April 2027.
- US LLCs and similar entities: double tax relief is being developed, for legislation in Finance Bill 2027-28.
- Company distributions: reforms proposed from April 2028.
Pensions and Family Wealth
- Pensions and inheritance tax: new arrangements will let personal representatives direct pension schemes to pay inheritance tax in some cases.
- Inherited pensions: otherwise tax-free death benefits will no longer become taxable solely because they are paid late, for payments from 28 October 2026. The change is being legislated through the Finance Bill.
- Inheritance tax allowances: the nil-rate band and residence nil-rate band are unchanged.
- Pension Tax Allowance: from 2027-28, removes small tax bills for pensioners with income around the State Pension level.
Savings and Cross-Border Reporting
- Savings and investment bonds: the higher savings rates also apply to chargeable event gains on offshore life assurance bonds from 6 April 2027.
- Cash ISAs: the £20,000 limit is retained for all savers over 18.
- Trading allowance: rises from £1,000 to £3,000 from 6 April 2027 for eligible gross trading and miscellaneous income.
- Paying tax: payments on account are expected to become automated in-year payments from April 2029.
Also Announced
Making Tax Digital for Non-Residents
People expected to be non-UK resident stay exempt from quarterly reporting until further notice. Legislation is due before April 2027; whether it applies automatically, or covers split-year and treaty claims, is not yet clear. The annual return is still required.
Trusts and Cryptoassets
No CGT exit charge for a trust that is UK resident only briefly because a trustee moves to the UK, from 28 October 2026. From 6 April 2027, stablecoins are taxed more like money, and certain crypto lending is treated as no gain, no loss.
Correcting Errors with HMRC
From 1 April 2028, a general duty to correct errors and new Customer Correction Notices. Known errors left uncorrected may be treated as deliberate, with higher penalties.
Key Dates
April 2027
New savings and property rates; lower Business Asset Disposal Relief limit; pensions in the IHT calculation.
April 2028
The High Value Council Tax Surcharge on homes in England; the proposed reforms to company distributions.
April 2029
Automated in-year Self Assessment payments, for example by Direct Debit, or through PAYE.
+852 9242 6144
* Property rates apply in England, Wales and Northern Ireland (Scotland and Wales may set their own); savings rates apply UK-wide. Sources: HM Treasury Budget 2026 (OOTLAR and Annex A); HMRC technical note on property and savings rates.