Chancellor John Healey delivered the Autumn Budget 2026 on Wednesday 28 October 2026. He stood up at around 12:30pm, straight after Prime Minister’s Questions, for his first Budget. The Budget documents followed once the speech ended. This article follows our preview of 8 October 2026. It covers what was actually announced and what did not change. It also explains what it means for taxpayers, small businesses, and Making Tax Digital users.
What the Autumn Budget 2026 Announced
The headline pledge held: no rises in the headline rates of income tax, National Insurance, or VAT. In addition, the corporation tax headline rate stays capped at 25%.
The main measures announced:
Bank Corporation Tax Surcharge rises from 3% to 6% for 15 months only. It runs from 1 January 2027 to 31 March 2028, returning to 3% from 1 April 2028. That raises £1.5 billion for energy support. However, this is not the return to 8% that pre-Budget reporting had suggested.
Savings and property income tax rises by a further 2 percentage points from 6 April 2027. This is on top of the Budget 2025 rise. As a result, the basic rate becomes 24%, the higher rate 44%, and the additional rate 49%. The property rates apply in England, Wales, and Northern Ireland, and the savings rates apply across the UK.
Autumn Budget 2026: household measures
The Cash ISA limit stays at £20,000. The planned cut to £12,000 for under-65s did not go ahead. That corrects our preview, where we had presented the cut as already confirmed.
Up to 20 million households in England will receive a £100 Household Energy Payment from January 2027. It goes to homes in council tax bands A to D. It will then arrive through the council tax system as part of a £2.6 billion scheme.
The Budget extends the domestic electricity VAT cut to July 2027. It should take around £50 off the annual Ofgem price cap in April 2027. The Budget also abolishes gas standing charges.
Fuel duty: the Budget cancels the planned January 2027 restoration of the 5p cut. The 5p cut now runs for a further six months to 1 July 2027. The planned RPI increase moves to the same date. The 3.7p red diesel cut also continues to 1 July 2027.
The National Living Wage rises by 3.9% to £13.21 per hour from 1 April 2027. Meanwhile, the 18 to 20 rate is £11.27.
The trading allowance also triples, from £1,000 to £3,000, from 6 April 2027.
Autumn Budget 2026: business and pension measures
Business Asset Disposal Relief: the lifetime limit falls from £1 million to £500,000 for disposals from 6 April 2027. In addition, a new Founders Relief will charge 10% on up to £10 million of lifetime gains. It covers qualifying founders, subject to consultation.
Capital allowances: the main rate first-year allowance rises from 40% to 50% from 1 January 2027. Meanwhile, the main rate writing-down allowance falls from 14% to 12% from April 2027.
From 1 October 2027, online marketplaces take responsibility for collecting VAT on sales by UK VAT-registered businesses. The rule also covers other UK businesses with over £90,000 of annual sales per platform. Personal sales, second-hand goods, and business-to-business transactions fall outside it.
The Budget modernises company distributions rules. Draft legislation will go out for consultation in 2027 and take effect from April 2028. The rules will still protect capital treatment for genuine changes of ownership, including family successions.
A Pension Tax Allowance applies from 6 April 2027 to 5 April 2030. Pensioners with total income at or under the full new State Pension pay no income tax on that basis. A taper applies just above.
Autumn Budget 2026: housing, duties and the tax gap
Your First Home is a £4.7 billion equity-loan scheme for around 70,000 households in England. It offers 20% equity loans with a 2.5% deposit. Pre-registration opens by the end of December 2026, full applications from February 2027, and then the first loans from April 2027.
Small business rates relief in England: the threshold rises from £12,000 to £18,000 for retail, hospitality, and leisure. In addition, a two-year real-terms bill freeze means about 70,000 more businesses pay no business rates.
Machine Games Duty rises from 20% to 25% only for machine games with stakes over £1, from April 2027. The lower-stake rate, however, stays the same.
Tax gap measures announced in this Parliament total over £12 billion in 2029-30. Meanwhile, HMRC will recruit 670 additional compliance officers by 2029-30.
What Is Already Confirmed for April 2027
The government had already locked several measures in before Budget day, regardless of what the Chancellor announced. From April 2027:
The Cash ISA subscription limit stays at £20,000. Our preview said it would fall to £12,000 for under-65s, but the cut did not go ahead.
A 22% charge also applies to interest on uninvested cash held in Stocks and Shares ISAs.
From 6 April 2027, most unused pension funds also come within the scope of inheritance tax.
The £30,000 Making Tax Digital income threshold takes effect. It brings a new wave of self-employed people and landlords into quarterly reporting.
If any of these touch you, plan around them now.
What Did Not Change
The Budget did not raise the headline rates of income tax, National Insurance, or VAT.
There was no headline capital gains tax rate rise. The CGT-adjacent changes are therefore the Business Asset Disposal Relief limit cut and the new Founders Relief, described above.
There was no mansion-tax threshold cut. The Red Book instead confirms a High Value Council Tax Surcharge from 1 April 2028 in England. That is a different measure, not the reported threshold change.
Nor did the Budget announce a change to the personal allowance.
What Was Rumoured, and What Actually Happened
Treat the pre-Budget rumours as closed, now that the Autumn Budget 2026 documents are out:
Capital gains tax. The most talked-about target was either a lower annual allowance or higher headline rates. However, neither happened. The confirmed CGT items are the Business Asset Disposal Relief limit cut and Founders Relief.
Family business transfers. Reports suggested purchase-of-own-shares would face a 40% or 45% income tax charge. That compares with capital gains tax rates of up to 24%. The Budget announced no such rate change. The confirmed measure is the broader company distributions framework reform from April 2028.
Energy support. Reports floated an extra £100 Warm Home Discount on top of other support, but the Budget did not include it. The confirmed energy measure is the £100 Household Energy Payment described above.
Fuel duty. Rumour said the Chancellor would freeze it again. In fact, the Budget extends the 5p cut to 1 July 2027. It also defers the RPI increase to the same date.
What MTD Users Should Watch
Taxpayers joining Making Tax Digital in April 2027 get no penalty points for late submission of their first four quarterly updates in 2027-28.
HMRC has deferred roll-out for several taxpayer groups until further notice. The groups are not specified in the passages checked, so do not assume which groups are affected.
The £30,000 threshold still takes effect from April 2027. HMRC compliance investment continues, with 670 additional compliance officers by 2029-30.
What to Do Now
First, review the confirmed April 2027 measures above and check which ones affect you.
Do not act on rumours that did not happen. If you based a decision on the reported capital gains tax rise or the reported family-business rate change, reconsider. That decision now rests on measures the Budget never announced.
If a confirmed change genuinely alters your plans, talk to an adviser before it takes effect.
Keep your records clean. Whatever the Budget brings, tidy digital records make every filing season easier.
Frequently Asked Questions
When was the Autumn Budget 2026?
Wednesday 28 October 2026. The Chancellor started speaking at around 12:30pm, straight after Prime Minister’s Questions, and the speech then lasted about an hour.
Who delivered the Budget?
Chancellor John Healey. It was his first Budget.
What happened to the Cash ISA cap?
The planned cut to £12,000 for under-65s did not go ahead. The limit stays at £20,000.
Did income tax, National Insurance, or VAT rates rise?
No. The government held its pledge not to raise the headline rates of income tax, National Insurance, or VAT.
What changed for MTD users?
Taxpayers joining in April 2027 get no penalty points for late submission. This covers their first four quarterly updates in 2027-28. The £30,000 threshold still takes effect from April 2027.
Can Budget changes take effect immediately?
Yes. Some changes take effect from Budget day itself. For example, the Budget cut the Lifetime ISA withdrawal charge to 20% from 28 October 2026.
Disclaimer:
This guide provides general information about the UK Autumn Budget announced on 28 October 2026, as of October 2026. Tax rules and government announcements can change. Nothing in this article is tax advice. Always consult with a qualified tax professional about your specific circumstances. That’s why we’re here for. In accordance with our normal practice we give this reference in good faith and in confidence, without legal liability on the part of the author or the company. The author assumes no responsibility or liability for any errors or omissions in the content of this blog.
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