UK Budget 2026: Key Tax Changes for Businesses, Landlords and Individuals
The Chancellor delivered the UK Budget on 28 October 2026, announcing several important tax changes affecting individuals, landlords, sole traders, limited companies and employers.
Although the government has maintained the main rates of Income Tax, National Insurance and VAT, a number of targeted changes will increase tax liabilities for certain taxpayers from April 2027.
At Amin & Co Accountants Ltd, we have summarised the key announcements and their potential implications for our clients.
1. Income Tax Rates and Personal Allowance
The Personal Allowance remains frozen at £12,570 for 2027/28.
For taxpayers in England, Wales and Northern Ireland, the main Income Tax rates remain:
Basic rate: 20%
Higher rate: 40%
Additional rate: 45%
The continued freezing of Income Tax thresholds may result in more individuals paying higher amounts of tax as salaries, pensions and business profits increase.
Scottish Income Tax rates for non-savings income are determined separately.
2. Landlords Face Higher Property Income Tax
One of the most significant announcements affects individuals receiving rental income.
From 6 April 2027, the rates of Income Tax applicable to property income in England, Wales and Northern Ireland will increase:
Tax band | Existing rate | New rate |
Basic rate | 20% | 24% |
Higher rate | 40% | 44% |
Additional rate | 45% | 49% |
For example, a landlord with £20,000 of taxable rental profits falling entirely within the basic-rate band could face an additional £800 annual tax liability.
Landlords should review their anticipated rental profits, mortgage interest restrictions and future tax payments.
3. Tax on Savings Income Increasing
From 6 April 2027, the Income Tax rates on savings income will increase to:
Basic rate: 24%
Higher rate: 44%
Additional rate: 49%
The changes will particularly affect individuals receiving substantial taxable interest from savings accounts, fixed deposits and other investments.
Applicable savings allowances and tax-free ISA income should be considered when assessing the impact.
4. Corporation Tax and Capital Allowances
The main Corporation Tax rate remains at 25%, while the small profits rate remains 19%, subject to the relevant thresholds, marginal relief and associated-company rules.
The Budget also announces changes to capital allowances.
From 1 January 2027, a 50% main-rate first-year allowance will apply to qualifying expenditure. The main writing-down allowance will reduce to 12% from April 2027.
Companies considering purchasing plant, machinery or business equipment should review the timing of expenditure and available tax reliefs.
5. Trading Allowance Increasing to £3,000
From 6 April 2027, the Trading Allowance will increase from £1,000 to £3,000.
The trading-income Self-Assessment reporting threshold will also increase to £3,000.
This may benefit individuals with small amounts of self-employment or miscellaneous trading income.
However, individuals with other Self-Assessment obligations may still need to submit a tax return.
6. Employers: Mandatory Payrolling of Benefits
The government will introduce mandatory payrolling of taxable benefits in kind through Real Time Information.
From 6 April 2027, the requirements will apply to company cars, vans, fuel and medical benefits.
Most other taxable benefits will follow from April 2028, with certain exceptions.
Employers should ensure that payroll systems are prepared and employee benefit records are accurate.
7. National Insurance Contributions
The main National Insurance rates remain unchanged.
The Lower Earnings Limit increases to £133 per week for 2027/28, while most other principal thresholds remain frozen.
Employers should continue to review their payroll costs and eligibility for Employment Allowance.
The Budget introduces an important easement for taxpayers required to join Making Tax Digital for Income Tax from April 2027.
HMRC will not apply late-submission penalty points to quarterly updates for the 2027/28 tax year for this group.
However, taxpayers must still maintain appropriate digital records and submit their quarterly updates before completing their tax returns.
This is a penalty easement, not an exemption from Making Tax Digital.
9. Self-Assessment Payments — Future Changes
From April 2029, the government intends to introduce more regular in-year tax payments for eligible Self-Assessment taxpayers who currently make payments on account.
The detailed design is still being developed.
The government also plans to require Direct Debit arrangements for VAT and PAYE return liabilities from April 2029, subject to exceptions and permitted alternative payments.
10. Other Budget Announcements
Additional measures include:
A High Value Council Tax Surcharge on residential properties worth £2 million or more from April 2028.
A new First Time Buyer ISA, planned for April 2029.
A Pension Tax Allowance for qualifying pensioners from April 2027.
Extended temporary fuel duty reductions until 30 June 2027.
New HMRC powers and obligations relating to correcting inaccurate tax returns from April 2028.
What Should Taxpayers Do Following the Budget?
The Budget highlights the importance of reviewing financial and tax arrangements before the new rules take effect.
Landlords should consider their projected rental income tax liabilities. Company directors should review remuneration and dividend planning, while employers should prepare for changes to payroll reporting.
Individuals with significant savings income should also consider the impact of higher tax rates from April 2027.
How Amin & Co Accountants Ltd Can Help
At Amin & Co Accountants Ltd, we provide professional accountancy and taxation services to individuals, sole traders, landlords, partnerships and limited companies.
Our services include:
Limited company accounts and Corporation Tax returns
VAT returns and compliance
Landlord and property taxation
Tax planning and HMRC enquiries
If you would like to understand how the Budget 2026 announcements may affect your personal or business tax position, please contact our team.
Amin & Co Accountants Ltd
Disclaimer: This article provides general information based on the Budget announcements of 28 October 2026. Some measures remain subject to legislation or further guidance. Professional advice should be obtained before making financial or taxation decisions.
Disclaimer – Errors and Omissions Excepted (E&OE)
The information contained in this publication has been prepared by Amin & Co Accountants Ltd for general information and guidance purposes only. Whilst every reasonable effort has been made to ensure its accuracy at the date of publication, the information may be subject to errors, omissions, subsequent legislative changes, amendments or further clarification by HM Treasury and HM Revenue & Customs.
The contents should not be regarded as comprehensive or as professional tax, accounting, legal or financial advice tailored to any individual's or business's circumstances. No action should be taken or refrained from solely on the basis of this publication without obtaining appropriate professional advice.
To the fullest extent permitted by law, Amin & Co Accountants Ltd accepts no liability for any loss or damage arising from reliance on the information contained in this publication. Nothing in this disclaimer excludes or restricts any liability that cannot lawfully be excluded or restricted.
Errors and Omissions Excepted (E&OE)
Official source: HMRC — Budget 2026 Overview of Tax Legislation and Rates, published 28 October 2026.
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