The Autumn Budget 2026 has arrived, with Chancellor John Healey announcing measures aimed at easing pressure on households while managing the UK’s public finances. From energy bill savings and changes to property income tax to updates for business owners, there’s quite a bit to get your head around.
The main rates of Income Tax, employee National Insurance and VAT remain unchanged, but some targeted tax increases and changes to business reliefs could affect your finances. Here’s our summary of the big announcements and what they could mean for you in practice.
Cost of living and household finances
Energy bills and winter support
Households are expected to benefit from changes to domestic energy bills, including plans to remove gas standing charges. The estimated saving is around £45 a year for households expected to benefit, although the amount will vary. The government is also considering similar changes to electricity standing charges.
A £100 Household Energy Payment is planned for eligible households in council tax bands A to D, with support expected from January 2027. VAT relief on qualifying domestic electricity supplies has also been extended until July 2027. These measures should offer some help with household costs, although eligibility and individual savings will vary.
Fuel duty and bus fares
The temporary 5p-per-litre fuel duty cut will remain in place until July 2027, helping to limit fuel costs for drivers. There’s also good news for bus passengers, with the £2 single fare cap outside London being restored! For regular commuters, this could help keep everyday travel costs down.
Income tax, savings and pensions
Higher tax on property and savings income
Tax rates on savings and property income are due to increase from April 2027. The new rates for property and savings income will be 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers.
These changes will mean higher tax bills for landlords, property investors and people earning taxable interest on savings. If you rely on rental income or savings interest, it’s worth reviewing your finances ahead of the changes to understand what they could mean for your tax bill.
ISA allowances and pensioner tax protection
The annual ISA allowance remains at £20,000, giving savers the flexibility to put money aside tax-free within the existing limit. A new Starter ISA is also planned to help first-time investors get started, although the full details are still to come.
The Budget also includes protection for pensioners whose only income is the State Pension, preventing them from being brought into paying Income Tax under the measure announced. Anyone with additional income from private pensions, savings or property should still check how the tax rules apply to their circumstances.
Business and employment
Business rates relief for pubs and music venues
Changes to business rates are intended to support businesses in sectors such as retail, hospitality and leisure. The revised relief arrangements could help eligible businesses manage their property costs, although the amount of support will depend on the rules and the type of business.
If you run a pub, restaurant, shop or other hospitality business, it’s worth checking the eligibility criteria to understand whether the changes could reduce your business rates bill.
Mileage allowance increases
If you use your own car for work, the mileage allowance rate is increasing. The first 10,000 miles has already been increased to 55p per mile and now any mileage over the 10,000 will also increase from 25p to 35p per mile under the announced changes. This could benefit employees who regularly travel for work and claim mileage expenses. Employers should review their expense policies and make sure their arrangements reflect the revised rate and eligibility rules. If you have your own business, make sure you update your calculations to include this change and therefore help reduce your tax liability.
National Living Wage increases
The National Living Wage and other minimum wage rates are due to increase from April 2027. The announced rates include £13.21 an hour for workers aged 21 and over, £11.27 for those aged 18 to 20, and £8.31 for eligible workers aged 16 to 17 and apprentices.
For employers, these increases are likely to affect payroll costs, particularly where a large proportion of the workforce is paid at or near the minimum wage. Reviewing staffing budgets and payroll arrangements ahead of April can help businesses get organised.
Investment in AI and technology
The Budget also includes investment in artificial intelligence, with funding aimed at strengthening the UK’s cyber defences, protecting against emerging AI-related threats and helping British technology businesses grow. For businesses, this shows the growing importance of AI, cybersecurity and digital infrastructure.
Support for young entrepreneurs
The government has announced plans for a pilot Young Entrepreneurs Allowance in England, intended to help eligible young people cover living costs during their first year of running a business.
The scheme could provide additional support for people taking their first steps into self-employment. However, the eligibility criteria, application process and level of support will determine who can benefit, so further guidance will be needed before anyone can rely on the funding.
Tax changes for business owners and the self-employed
Trading allowance increases
The trading allowance is set to increase from £1,000 to £3,000. This allowance is relevant to people earning money through small-scale self-employment or casual trading.
The increase mean’s people can earn more before needing to report that income under the applicable rules. However, eligibility and reporting requirements depend on individual circumstances, so it’s important not to assume that income below £3,000 never needs to be declared.
Business sale and founders’ relief
Business owners planning to sell their companies should pay attention to changes to Business Asset Disposal Relief, which can reduce the Capital Gains Tax payable on qualifying business disposals. The lifetime limit and eligibility rules should be checked carefully before making decisions about a future sale.
Additionally, from 6 April 2027, qualifying founders of high-growth, innovative companies will be eligible for a 10% Capital Gains Tax rate on up to £10 million of lifetime gains.
If you’re considering selling your company, transferring ownership or planning for retirement, reviewing your options early can help you understand the potential tax implications.
Self Assessment changes
Changes to Self Assessment are expected from 2029, with plans for smaller, more regular tax payments. Further details are yet to be announced, but the changes could affect how self-employed people manage their cash flow and set money aside for tax. This is likely to coincide with the Making Tax Digital submissions, however further announcements will confirm exactly what the plans entail.
Keeping accurate records and planning for tax payments throughout the year will remain important as the new arrangements develop.
What does the Autumn Budget 2026 mean for you?
This year’s Budget offers some welcome relief for households, particularly through energy support and the continued fuel duty cut. However, people earning income from savings or property may need to prepare for higher tax bills from April 2027. For businesses, the picture is more mixed. Some hospitality and entertainment venues will benefit from business rates relief, while changes to mileage allowances, trading allowances and business sale relief could affect financial planning.
If there’s one thing we encourage you to take away from this, it’s don’t wait until a change comes into effect to find out how it affects you. Reviewing your finances and understanding which reliefs apply to you can help you plan ahead and avoid unexpected costs.
Need help understanding what the Budget means for your personal or business finances? Talk to our friendly team at Trinity Accountants. We’d be happy to help you understand the changes and plan your next steps!
