Source and credit: this article reproduces and summarises three guides published in October 2026 by ACCA UK’s Technical Advisory Service: A guide to the Autumn Budget 2026, Autumn Budget 2026: tax rates and allowances and Autumn Budget 2026: Stamp duty land taxes: UK. All content is credited to ACCA (the Association of Chartered Certified Accountants). Taxlab is an ACCA-regulated firm of Chartered Certified Accountants.
The Chancellor delivered his Budget highlighting intentions to modernise many of the tax areas and made a series of announcements relating to businesses, individuals and their agents. Within the Budget documents, a number of changes have been detailed which will impact on business investment planning and cashflow. As with previous budgets, complexity may increase as we will see a number of consultations and further details shared over the next few weeks.
This guide summarises the key measures announced in the Autumn Budget 2026, followed by ACCA’s full tables of tax rates and allowances for 2027/28 and the current stamp duty land tax rates across the UK.
Contents
- Part 1: Key measures for businesses
- Part 2: Key measures for individuals
- Part 3: Other announcements
- Part 4: Tax rates and allowances 2027/28
- Part 5: Stamp duty land taxes across the UK
Part 1: Key measures for businesses
Corporation tax
Budget 2025 extended the 100% first-year allowances (FYA) for qualifying expenditure on zero emission cars and the 100% FYA for qualifying expenditure on plant or machinery for electric vehicle (EV) charge points until 31 March 2027 for corporation tax purposes, and 5 April 2027 for income tax purposes. This has not been extended in Budget 2026 and the 100% FYA rate will end on those dates.
As part of modernising the administration of corporation tax, the government will publish a Call for Evidence on the future administration of Corporation Tax, seeking views on how a modernised Corporation Tax administration system could better support companies to report and pay the right amount of tax first time.
No other major announcements related to corporation tax were included in Budget 2026.
Capital allowances
From 1 January 2027 the new First-Year Allowance of 40% for main-rate assets will be increased to 50%. The relief will apply to certain assets beyond the current availability of full expensing and the Annual Investment Allowance (AIA). This will enable the leasing sector, which is currently excluded, to become eligible for first-year allowances. Cars, second-hand assets and assets for leasing overseas will not be eligible.
With effect from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax, the main rate writing-down allowance will be reduced from 14% to 12%. A hybrid rate will apply to chargeable periods spanning the relevant date.
Making Tax Digital (MTD) for Income Tax
As previously announced, Making Tax Digital for Income Tax will be extended to sole traders and landlords with income over £30,000 from April 2027 and to those with income over £20,000 from April 2028.
Taxpayers joining MTD for Income Tax in April 2027 will not receive penalty points for late submission of their first four quarterly updates for the tax year 2027-28.
The government previously announced a one-year deferral for several small groups of taxpayers (recipients of trust and estates income, individuals who use averaging adjustments, those eligible for qualifying care relief, and non-UK resident foreign entertainers or sportspeople). The roll-out of MTD to these taxpayer groups will now be deferred until further notice.
National Minimum Wage and National Living Wage
On 1 April 2027:
- the National Living Wage will increase by 3.9% to £13.21 per hour
- the National Minimum Wage will increase by 3.9% to £11.27 per hour for 18 to 20-year-olds
- it will increase by 3.9% to £8.31 per hour for 16 to 17-year-olds and eligible apprentices
- the accommodation offset will rise by 3.9% to £11.53 per day
Business rates relief (England)
The government is increasing the Small Business Rates Relief (SBRR) eligibility thresholds for qualifying Retail, Hospitality and Leisure (RHL) properties in England from 1 April 2027. The threshold for 100% relief will increase to a rateable value of £18,000, and the threshold for tapered relief will increase to a rateable value of £21,000. These thresholds will provide ongoing support to qualifying properties, with their level kept under review alongside the 2029 revaluation.
The government will extend the existing Transitional Relief Supplement in England for a further two years. This 1p supplement only affects properties that have seen smaller increases or reductions in their business rates bills, and will help fund the two-year real-terms freeze for qualifying RHL properties.
Taxlab note: business rates are devolved, so these changes apply in England. Scottish businesses should look out for the Scottish Budget.
Stamp Duty Land Tax (SDLT)
From 1 May 2026, SDLT no longer applies to the rent element of assured tenancies, and tenants are no longer required to file SDLT returns solely because rent is payable under an assured tenancy.
Modernisation of the stamp taxes on shares framework
From late 2027, the new Securities Transfer Tax will replace Stamp Duty and Stamp Duty Reserve Tax. The government will introduce legislation in Finance Bill 2026–27, with the changes coming into force through a commencement order in late 2027.
Inheritance tax (IHT)
From 6 April 2027 most unused pension funds and pension death benefits will be brought within the value of a person’s estate for inheritance tax purposes. This was legislated for in Finance Act 2026.
The government will also introduce legislation allowing those administering an estate to decide whether notional pension property is included in the “general” component of the estate or treated as a separate component, for the purposes of calculating the reduced rate of inheritance tax when part of the estate is left to charity.
No other rate changes for inheritance tax have been announced, and the thresholds remain frozen until April 2031.
HMRC is also working on the digitisation of IHT. The new digital Inheritance Tax service will allow executors and representatives to manage and complete IHT cases online, with faster processing, clear guidance, reduced manual intervention and improved compliance.
Capital gains tax (CGT)
From 6 April 2027 the lifetime limit of how much Business Asset Disposal Relief (BADR) an individual can claim will be reduced from £1,000,000 to £500,000.
From 6 April 2027, gift holdover relief will be extended through a revised calculation that takes account of assets within the intangible fixed assets regime and shares qualifying for the substantial shareholding exemption.
New Founders’ Relief
From 6 April 2027, Founders’ Relief will introduce a 10% Capital Gains Tax rate on qualifying disposals of shares or securities, subject to a £10 million lifetime limit. The relief is intended to support founders and early investors who have made a significant, long-term contribution to developing high-growth and innovative UK companies.
VAT thresholds
There have been no announcements on the VAT thresholds, registration or deregistration limits, or the rates applicable to various products and services.
E-invoicing
The government will require VAT invoices to be issued in a specified electronic format from 1 April 2029. The government has published an implementation roadmap, which sets out the key elements of the e-invoicing regime, and by April 2028 will provide full details on the policy and technical design of e-invoicing. The government has also published a consultation on potential future uses of structured invoice data generated through e-invoicing.
VAT online marketplace liability (OMPL)
Subject to the rules being finalised, from October 2027 VAT OMPL rules will be extended to UK businesses. Online marketplaces will be responsible for collecting VAT on sales by UK VAT-registered businesses and any other UK business with a minimum annual sales threshold per platform of £90,000. The rules will not apply to non-business (personal) sales, second-hand goods, or business-to-business transactions.
VAT reverse charge
From April 2027, the VAT reverse charge for B2B supplies of services from overseas will be restricted to cases where the receiving UK business is VAT registered. Where the UK business is not VAT registered, the overseas supplier will be required to charge and account for UK VAT. The government will introduce legislation in Finance Bill 2026–27 to implement this change.
Research and development (R&D) claims
From 1 April 2027 the R&D Claim Notification Form (CNF) requirement will be removed for claims made on or after that date. This removes the challenging requirement for a business to pre-notify HMRC that it intends to make an R&D tax relief claim.
In addition, from autumn 2027, HMRC will rationalise the Additional Information Form (AIF) that companies must submit in support of an R&D tax relief claim. The improvements will include reducing unnecessary duplication, improving the information requested on contracting and on externally provided workers, and providing greater clarity on project information requirements and the Enhanced R&D Intensive Support intensity ratio.
Close company reporting
Following consultation on company payments to participators, the government will not implement the proposed new reporting requirements at this time.
Payment of VAT and PAYE liabilities by Direct Debit
From April 2029, businesses will be required to set up a Direct Debit instruction for HMRC VAT and PAYE return payments unless exempt. However, HMRC has stated that the Direct Debit mandate will only be used as a safeguard to collect any return liability which remains unpaid at the due date; businesses will retain flexibility in how they pay before the due date.
HMRC has indicated that it will work with stakeholders and use the time before the change is introduced to address concerns around misallocations, system errors and compatibility with the Direct Debit process.
Part 2: Key measures for individuals
Income tax
The Autumn Budget 2025 extended the freeze on personal tax thresholds (the personal allowance and the basic and higher rate thresholds for income tax, at the current levels of £12,570 and £50,270) until 2030-31.
While no further tax rises on employment or dividend income were announced, from April 2027 tax rates on property and savings income will increase by a further 2% on top of the previously announced 2% increase. The property tax rates will apply across England, Wales and Northern Ireland, while the savings tax rates will apply across the whole of the UK. The rates applicable from April 2027 will increase as follows:
- 20% to 24% (basic rate)
- 40% to 44% (higher rate)
- 45% to 49% (additional rate)
Company Share Option Plan (CSOP) and Enterprise Management Incentives (EMI)
From 6 April 2027, the individual option limit under the Company Share Option Plan will increase from £60,000 to £120,000, doubling the value of share options that employees can hold under the scheme.
The changes to CSOP and EMI from 6 April 2027 will also:
- remove the interaction between the CSOP and EMI individual option limits
- extend the CSOP exercise period to 15 years
- extend certain exceptions to the disguised remuneration rules to 15 years
- widen the EMI exception for companies arranging to become controlled by an Employee Ownership Trust (EOT)
- extend the EMI exercise window following disqualifying events to 180 days
National Insurance
For the 2027–28 tax year, the Class 1 Lower Earnings Limit and Class 2 Small Profits Threshold, along with voluntary Class 2 and Class 3 National Insurance contribution rates, will be uprated in line with September CPI inflation of 3.5%. The remaining National Insurance limits and thresholds will be frozen at 2026–27 levels until 2030-31.
National Insurance on pension salary sacrifice
As announced in the previous Budget, from April 2029 the amount of employee pension contributions made through salary sacrifice that is exempt from National Insurance contributions (NICs) will be capped at £2,000 per year.
Employees who contribute up to £2,000 a year into their pension via salary sacrifice can continue to benefit in full, but employee and employer NICs will be charged in the usual way on the amount above £2,000.
The government also confirmed that employees who use salary sacrifice to access Tax-Free Childcare or Child Benefit can continue to do so, but any pension contributions above the £2,000 cap will be subject to NICs.
Trading and miscellaneous income allowance
From 6 April 2027, the tax-free Trading Allowance and the Self Assessment reporting threshold will both increase from £1,000 to £3,000.
Approved mileage rates
The government is permanently increasing tax-free mileage rates for employees and self-employed people who use their own car or van for work. The tax-free rate will be 55p per mile for the first 10,000 miles (from April 2026) and 35p per mile for mileage above 10,000 miles (from April 2027).
More timely payment for Self Assessment
From April 2029, the government will require Income Tax Self Assessment (ITSA) taxpayers who are liable to make payments on account to pay more of their tax in year, through Direct Debit by default. Those who also have PAYE income may be able to elect for payments to be settled through PAYE.
HMRC has said it will release new web and app functionality for ITSA taxpayers to estimate their liability, make voluntary payments towards it and track how their payments are covering their forecast tax liability. The Budget documents say this functionality will become available in 2028, supporting taxpayers to make pre-payments and prepare for the transition to the new arrangements from April 2029.
The government has indicated an intention to “design arrangements that reflect the realities of self-employment, responding to the concerns raised through the consultation. This includes considering the appropriate frequency of payments, how taxpayers can update forecasts when their income changes, and what safeguards and flexibilities may be needed for taxpayers experiencing cashflow difficulties”.
Further detail will be published next year on:
- the frequency and timing of in-year payments
- the safeguards and flexibilities needed for taxpayers facing financial difficulty
- the approach to compliance, including penalties and interest
- communications and support for customers
- how the transition to the new arrangements will work
Individual Savings Accounts (ISAs)
The government has decided not to reduce the cash ISA limit, so it remains at £20,000.
From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers. It will provide a 25% bonus on the final account balance up to a maximum of £20,000, paid on withdrawal, towards the purchase of a first home worth up to £450,000. Existing Lifetime ISA holders will be able to continue contributing to and using their accounts under the current rules.
Part 3: Other announcements
Investing in HMRC’s debt management capacity
The government will invest a further £70 million over the next five years in HMRC’s existing partnerships with private sector debt collection agencies to collect more tax debt.
Additional HMRC compliance staff
The government will recruit an additional 670 HMRC compliance officers by 2029-30, building on previous commitments to recruit 5,500 additional compliance officers.
Part 4: Tax rates and allowances 2027/28
Income tax rates: England, Wales and Northern Ireland (non-dividend income)
| Rate and band | 2027/28 | 2026/27 |
|---|---|---|
| 0% starting rate for savings only | Up to £5,000 | Up to £5,000 |
| 0% on personal allowance (subject to any clawback of PA) | £0–£12,570 | £0–£12,570 |
| 20% basic rate (except property and savings income) | £12,571–£50,270 | £12,571–£50,270 |
| 24% basic rate (property and savings income) | £12,571–£50,270 | n/a |
| 40% higher rate (except property and savings income) | £50,271–£125,140 | £50,271–£125,140 |
| 44% higher rate (property and savings income) | £50,271–£125,140 | n/a |
| 45% additional rate (except property and savings income) | Above £125,140 | Above £125,140 |
| 49% additional rate (property and savings income) | Above £125,140 | n/a |
Note 1: the Welsh Government has made a commitment not to raise Welsh rates of income tax. Welsh taxpayers will therefore continue to pay the same rates as their English and Northern Irish counterparts. The income tax bands will remain frozen to 2030/31. An extra 4% income tax will be payable from April 2027 on property and savings income.
Note 1a: the UK rates are reduced by 10p in £1 for Welsh taxpayers, and the Welsh rates of income tax are set by the Senedd and added to the UK rates. The Welsh Government’s Budget for 2027/28 will be published on 16 February 2027.
Scottish rates of income tax (non-dividend income)
| Rate and band | 2027/28 | 2026/27 |
|---|---|---|
| 0% on personal allowance (subject to any clawback of PA) | £0–£12,570 | £0–£12,570 |
| 19% starter rate | £12,571–£16,537 | £12,571–£16,537 |
| 20% basic rate | £16,538–£29,526 | £16,538–£29,526 |
| 21% intermediate rate | £29,527–£43,662 | £29,527–£43,662 |
| 42% higher rate | £43,663–£75,000 | £43,663–£75,000 |
| 45% advanced rate | £75,001–£125,140 | £75,001–£125,140 |
| 48% top rate | Above £125,140 | Above £125,140 |
Note 2: Scottish taxpayers pay the same tax as the rest of the UK on dividends and savings interest. The Scottish Budget is set for 3 December 2026, and all the rates will be updated in due course.
Income tax rates (dividend income)
| Dividends | 2027/28 | 2026/27 |
|---|---|---|
| Dividend allowance | £500 | £500 |
| Dividend ordinary rate (dividends within basic rate band) | 10.75% | 10.75% |
| Dividend upper rate (dividends within higher rate band) | 35.75% | 35.75% |
| Dividend additional rate (dividends above higher rate band) | 39.35% | 39.35% |
Child benefit and guardian’s allowance (per week)
| Benefit | 2027/28 | 2026/27 |
|---|---|---|
| Higher rate (eldest or only child) | £28.00 | £27.05 |
| Other children | £18.55 | £17.90 |
| Guardian’s allowance | £23.75 | £22.95 |
Note 3: from April 2024, the threshold for the High Income Child Benefit Charge (HICBC) increased to £60,000 (from £50,000), with the taper band extended to £80,000. The charge therefore reduces the financial benefit of receiving child benefit for those with adjusted net income between £60,000 and £80,000. The benefit is removed completely for taxpayers with income above £80,000.
Note 4: from January 2021, child benefit payments may be available for children living overseas in certain countries only.
Personal allowances
| Allowance | 2027/28 | 2026/27 |
|---|---|---|
| Personal allowance | £12,570 | £12,570 |
| Dividend allowance (no allowance for trustees) | £500 | £500 |
| Pensions tax allowance (note 5) | £13,037 | n/a |
| Married couple’s allowance – minimum amount | £4,690 | £4,530 |
| Maximum married couple’s allowance for those born before 6 April 1935 (note 5a) | £12,110 | £11,700 |
| Trading and miscellaneous income allowance | £3,000 | £1,000 |
| Property income allowance | £1,000 | £1,000 |
| Income limit for personal allowance (note 6) | £100,000 | £100,000 |
| Income limit for married couple’s allowance: born before 6 April 1935 | £40,600 | £39,200 |
| Blind person’s allowance | £3,370 | £3,250 |
| Rent-a-room relief | £7,500 | £7,500 |
| Transferable tax allowance for married couples and civil partners (note 7) | £1,260 | £1,260 |
| Personal savings allowance: basic rate taxpayers | £1,000 | £1,000 |
| Personal savings allowance: higher rate taxpayers | £500 | £500 |
| Personal savings allowance: additional rate taxpayers | £0 | £0 |
Note 5: the pensions tax allowance will be withdrawn at a rate of £1 for every £3 of income above the eligibility threshold of £13,037, meaning the pensions tax allowance is fully removed at £13,319.
Note 5a: this allowance is reduced by £1 for every £2 of income above the income limit, but married couple’s allowance will not reduce below £4,690 for 2027/28 and £4,530 for 2026/27.
Note 6: personal allowances are subject to the £100,000 income limit, which applies regardless of the individual’s date of birth. The personal allowance is reduced by £1 for every £2 of income above the limit, down to zero.
Note 7: this allowance is available to married couples and civil partners who are not receiving married couple’s allowance. A spouse or civil partner who is not liable to income tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rates. If the couple marry or register a civil partnership, they will get the allowance on a pro-rata basis for the rest of that tax year. If one of them dies or there is a divorce or separation, the allowance continues until the end of the tax year.
National Insurance contributions
| Limits and thresholds (per week unless stated) | 2027/28 | 2026/27 |
|---|---|---|
| Lower earnings limit, primary Class 1 | £133 | £129 |
| Primary threshold | £242 | £242 |
| Secondary threshold | £96 | £96 |
| Upper earnings limit, primary Class 1 | £967 | £967 |
| Upper secondary threshold for under 21s | £967 | £967 |
| Apprentice upper secondary threshold (AUST) for under 21s/25s | £967 | £967 |
| Freeport upper secondary threshold | £481 | £481 |
| Investment Zones upper secondary threshold | £481 | £481 |
| Veteran upper secondary threshold | £967 | £967 |
| Employment allowance (per year, per employer) | £10,500 | £10,500 |
| Employee’s (primary) Class 1 contribution rates | 2027/28 | 2026/27 |
|---|---|---|
| Below lower earnings limit (LEL) | n/a | n/a |
| Lower earnings limit (LEL) to primary threshold (PT) | 0% | 0% |
| Primary threshold (PT) to upper earnings limit (UEL) | 8% | 8% |
| Above upper earnings limit (UEL) | 2% | 2% |
| Married woman’s reduced rate (primary Class 1) | 2027/28 | 2026/27 |
|---|---|---|
| Weekly earnings between the primary threshold (PT) and upper earnings limit (UEL) | 1.85% | 1.85% |
| Weekly earnings above the upper earnings limit (UEL) | 2% | 2% |
| Employer’s (secondary) Class 1 contribution rates* | 2027/28 | 2026/27 |
|---|---|---|
| Below secondary threshold (ST) | 0% | 0% |
| Above secondary threshold (ST) | 15% | 15% |
| Class 1A/1B NIC | 15% | 15% |
* The same rates of employer’s secondary Class 1 contributions apply below and above the relevant secondary thresholds for employees under 21, apprentices under 25, eligible employers in Freeports and Investment Zones, and qualifying veterans.
| Self-employed Class 2 thresholds and rates | 2027/28 | 2026/27 |
|---|---|---|
| Small profits threshold (SPT) | £7,355 | £7,105 |
| Lower profits threshold (LPT) | £12,570 | £12,570 |
| Below small profits threshold (per week) | £3.80 (voluntary) | £3.65 (voluntary) |
| Above small profits threshold to lower profits threshold | £0 | £0 |
| Above lower profits threshold | £0 | £0 |
| Special Class 2 rate for share fishermen (per week) | £4.45 | £4.30 |
| Special Class 2 rate for volunteer development workers (per week) | £6.65 | £6.45 |
| Class 3 and Class 4 | 2027/28 | 2026/27 |
|---|---|---|
| Class 3 voluntary contributions (per week) | £19.05 | £18.40 |
| Class 4 lower profits limit (LPL), annual | £12,570 | £12,570 |
| Class 4 upper profits limit (UPL), annual | £50,270 | £50,270 |
| Class 4 rate below LPL | 0% | 0% |
| Class 4 rate between LPL and UPL | 6% | 6% |
| Class 4 rate above UPL | 2% | 2% |
Pensions
| Allowance | 2027/28 | 2026/27 |
|---|---|---|
| Annual allowance (note 8) | £60,000 | £60,000 |
| Money purchase annual allowance | £10,000 | £10,000 |
| Lump sum allowance | £268,275 | £268,275 |
| Lump sum and death benefit allowance | £1,073,100 | £1,073,100 |
| Overseas transfer allowance | £1,073,100 | £1,073,100 |
Note 8: individuals with a high income have a tapered annual allowance: for every £2 of adjusted income over a threshold, the annual allowance is reduced by £1. From April 2023, the annual allowance is £10,000 for individuals with total adjusted income (including pension accrual) over £260,000.
Reliefs and incentives
| Scheme | 2027/28 | 2026/27 |
|---|---|---|
| Enterprise Investment Scheme (EIS) – maximum (note 9) | £1,000,000 | £1,000,000 |
| Knowledge-intensive companies | £2,000,000 | £2,000,000 |
| Venture Capital Trust (VCT) – maximum | £200,000 | £200,000 |
| Seed Enterprise Investment Scheme (SEIS) – maximum (note 10) | £200,000 | £200,000 |
| Enterprise Management Incentives (EMI) – individual employee limit in a three-year period | £250,000 | £250,000 |
| Income tax relief on EIS | 30% | 30% |
| Income tax relief on VCT | 20% | 20% |
| Income tax relief on SEIS | 50% | 50% |
Note 9: from April 2026, the VCT and EIS annual investment limit for the capital companies can raise increased to £10m (£20m for knowledge-intensive companies (KICs)). The lifetime limit increased to £24m (£40m for KICs). However, the rate of relief for individual investors in VCTs was reduced from 30% to 20%.
Note 10: capital gains tax reinvestment relief may also be available on up to 50% of the amount invested.
Individual Savings Accounts (ISAs)
| Account | 2027/28 | 2026/27 |
|---|---|---|
| ISA annual limit (note 11) | £20,000 | £20,000 |
| Junior ISA annual limit (under 18, living in the UK) | £9,000 | £9,000 |
| Child Trust Fund annual limit | £9,000 | £9,000 |
| Lifetime ISA annual limit (note 12) | £4,000 | £4,000 |
Note 11: all ISA limits are frozen until 5 April 2031.
Note 12: to open a Lifetime ISA, you must be 18 or over but under 40. Contributions can be made until the age of 50. The government adds a 25% bonus to the savings, up to a maximum of £1,000 a year. The £4,000 Lifetime ISA limit counts towards the annual ISA limit. From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers. It will provide a 25% bonus on the final account balance up to a maximum of £20,000, paid on withdrawal, towards the purchase of a first home worth up to £450,000. Existing Lifetime ISA holders will be able to continue contributing to and using their accounts under the current rules.
Capital gains tax
| Rate or allowance | 2027/28 | 2026/27 |
|---|---|---|
| Basic rate individual taxpayer (other than carried interest) | 18% | 18% |
| Higher rate taxpayer / main rate for trustees and personal representatives (other than carried interest) | 24% | 24% |
| Annual exemption – individuals, personal representatives and trusts for disabled persons | £3,000 | £3,000 |
| Annual exemption – other trusts | £1,500 | £1,500 |
| Business Asset Disposal Relief lifetime limit (notes 13 and 13a) | £500,000 | £1,000,000 |
| Investors’ Relief lifetime limit | £1,000,000 | £1,000,000 |
| Business Asset Disposal Relief / Investors’ Relief rate | 18% | 18% |
| Founders’ Relief rate (note 13b) | 10% | n/a |
| Founders’ Relief lifetime limit (note 13b) | £10,000,000 | n/a |
| Chattels exemption | £6,000 | £6,000 |
| Temporary Repatriation Facility (TRF) for designated foreign income and gains (FIG) (note 13c) | 15% | 12% |
Note 13: the Business Asset Disposal Relief (BADR) lifetime limit is reduced from £1,000,000 to £500,000 for qualifying disposals made on or after 6 April 2027.
Note 13a: from 26 November 2025, Capital Gains Tax relief on qualifying disposals of shares to the trustees of an Employee Ownership Trust (EOT) was reduced from 100% of the gain to 50% of the gain.
Note 13b: from 6 April 2027, Founders’ Relief applies, with any Business Asset Disposal Relief or Investors’ Relief claimed from that date reducing the available lifetime limit for Founders’ Relief.
Note 13c: the Temporary Repatriation Facility is available to former remittance basis users who have unremitted foreign income and gains for tax years before 2025/26. Individuals can elect to pay tax at the TRF rate on offshore funds that they designate, and the designated funds will then not be taxed on remittance to the UK. Former remittance basis users can also use the TRF to designate distributions from trust structures which are matched to foreign income and gains that arose before April 2025.
Inheritance tax
| Band, rate or exemption | 2027/28 | 2026/27 |
|---|---|---|
| Single person’s nil-rate band (note 14) | £325,000 | £325,000 |
| Single person’s 40% band | Over £325,000 | Over £325,000 |
| Residence nil-rate band (RNRB) – maximum (note 15) | £175,000 | £175,000 |
| Reduced rate (note 16) | 36% | 36% |
| IHT rate for chargeable lifetime transfers | 20% | 20% |
| Married couples or civil partners’ combined nil-rate band | £650,000 | £650,000 |
| Gifts to charities | Exempt | Exempt |
| Small gifts to the same person | £250 | £250 |
| General gifts – annual exemption | £3,000 | £3,000 |
| Wedding gifts to children | £5,000 | £5,000 |
| Wedding gifts to grandchildren | £2,500 | £2,500 |
| Wedding gifts to any other person | £1,000 | £1,000 |
Note 14: all unspent pension pots will be brought into the scope of inheritance tax from April 2027.
Note 15: the RNRB is available on a main residence passed to children (including adopted, foster or stepchildren). Any unused nil-rate band transfers to the deceased’s spouse or civil partner, even where the death predates the availability of the additional threshold. It applies in addition to the existing nil-rate band (currently £325,000) if the individual and estate meet the qualifying conditions. The inheritance tax nil-rate band and residence nil-rate band thresholds are maintained at their current levels until April 2031.
Note 16: the estate can pay inheritance tax at a reduced rate of 36% on some assets if 10% or more of the net value is left to charity in the will.
Business property relief and agricultural property relief
| Business or interest in a business, and transfers of unquoted shareholdings (note 17) | 2027/28 | 2026/27 |
|---|---|---|
| Up to £2.5m | 100% | 100% |
| More than £2.5m | 50% | 50% |
Note 17: from April 2026, agricultural property relief (APR) and business property relief (BPR) are restricted, with 100% relief for the first £2.5m of combined value and 50% relief thereafter. Any unused £2.5m allowance for the 100% rate is transferable between spouses and civil partners, including where the first death was before 6 April 2026. The individual combined BPR/APR allowance is fixed at £2.5m until 5 April 2031.
Taxation of trusts
| Accumulation or discretionary trusts | 2027/28 | 2026/27 |
|---|---|---|
| Trust income up to £500 – dividend-type income | 10.75% | 10.75% |
| Trust property and savings basic rate | 24% | n/a |
| Trust income up to £500 – all other income | 20% | 20% |
| Dividend trust rate for accumulated and discretionary dividend income | 39.35% | 39.35% |
| Property and savings trust rate for accumulated and discretionary property income | 49% | n/a |
| Trust rate for other accumulated and discretionary income | 45% | 45% |
| Interest in possession trusts | 2027/28 | 2026/27 |
|---|---|---|
| Dividend-type income | 10.75% | 10.75% |
| All other income | 20% | 20% |
Corporation tax
| Rate | 2027/28 | 2026/27 |
|---|---|---|
| Small profits rate (companies with profits under £50,000) | 19% | 19% |
| Main rate (companies with profits over £250,000), all profits and gains excluding determination agreements and diverted profits | 25% | 25% |
| Limits for marginal relief | £50,000–£250,000 | £50,000–£250,000 |
| Standard fraction for marginal relief | 3/200 | 3/200 |
| S455 tax on loans made by close companies to participators | 35.75% | 35.75% |
Capital allowances
| Allowance | 2027/28 | 2026/27 |
|---|---|---|
| Main writing-down allowance (reducing balance) | 12% | 14% |
| Special rate writing-down allowance (reducing balance) | 6% | 6% |
| Structures and buildings allowance (SBA) | 3% | 3% |
| Full expensing – main rate plant and machinery (note 18) | 100% | 100% |
| Full expensing – special rate plant and machinery (note 18) | 50% | 50% |
| First-year allowance – main rate plant and machinery (note 18a) | 50% | 40% |
| Motor cars with CO2 emissions over 0g/km but not exceeding 50g/km | 12% | 14% |
| Motor cars with CO2 emissions over 50g/km | 6% | 6% |
| First-year allowance – new and unused cars with CO2 emissions of 0g/km or electric (note 19) | 100% | 100% |
| Small pool write-off where written-down value is £1,000 or less | 100% | 100% |
| First-year allowance for electric charge points (note 19) | 100% | 100% |
| Annual investment allowance (AIA) | £1,000,000 | £1,000,000 |
| AIA rate | 100% | 100% |
Note 18: full expensing has been made permanent from 1 April 2026.
Note 18a: from 1 January 2026, a new first-year allowance was introduced for main rate expenditure (including UK leased assets). From 1 January 2027 the first-year allowance of 40% for main rate assets will be increased to 50%.
Note 19: from April 2021, the threshold for the FYA was reduced from 50g/km to 0g/km. The main rate of capital allowance applies to business cars with CO2 emissions not exceeding 50g/km. Business cars with CO2 emissions above 50g/km are eligible for writing-down allowance at the special rate of 6%. The first-year allowance on electric cars and electric charge points is extended to 31 March 2027.
Research and development tax credits
| Rate | 2027/28 | 2026/27 |
|---|---|---|
| R&D merged scheme (note 20) | 20% | 20% |
| R&D intensive SME deduction rate | 186% | 186% |
| R&D intensive SME payable credit | 14.5% | 14.5% |
| R&D intensive SME intensity ratio (note 21) | 30% | 30% |
| Patent box | 10% | 10% |
Note 20: from April 2024, the R&D tax credits and RDEC schemes were merged, and relief is available at a flat rate of 20%. The SME R&D payable credit is only available to R&D-intensive companies.
Note 21: loss-making SMEs whose R&D expenditure is at least 30% of total expenditure (for accounting periods beginning on or after 1 April 2024) are referred to as “R&D-intensive SMEs”.
VAT
| Rate or threshold | 2027/28 | 2026/27 |
|---|---|---|
| Standard rate | 20% | 20% |
| Reduced rate | 5% | 5% |
| Zero rate | 0% | 0% |
| Flat rate on gross turnover for limited cost traders | 16.5% | 16.5% |
| Registration threshold | £90,000 | £90,000 |
| Deregistration threshold | £88,000 | £88,000 |
| Cash and annual accounting schemes – maximum to join | £1,350,000 | £1,350,000 |
| Cash and annual accounting schemes – exit threshold | £1,600,000 | £1,600,000 |
| Flat rate scheme – maximum to join | £150,000 | £150,000 |
| Flat rate scheme – exit threshold | £230,000 | £230,000 |
Annual tax on enveloped dwellings (ATED)
| Property value | 2027/28 | 2026/27 |
|---|---|---|
| More than £0.5m but not more than £1m | £4,750 | £4,600 |
| More than £1m but not more than £2m | £9,750 | £9,450 |
| More than £2m but not more than £5m | £33,300 | £32,200 |
| More than £5m but not more than £10m | £78,050 | £75,450 |
| More than £10m but not more than £20m | £156,750 | £151,450 |
| More than £20m | £314,050 | £303,450 |
Economic crime (anti-money laundering) levy
| Entity size (note 22) | 2027/28 | 2026/27 |
|---|---|---|
| Small entity (less than £10.2m UK revenue) | n/a | n/a |
| Medium entity (UK revenue £10.2m–£36m) / Band A | £10,200 | £10,200 |
| Large entity (UK revenue £36m–£500m) / Band B | £36,000 | £36,000 |
| Large (upper) entity (UK revenue £500m–£1bn) / Band C | £500,000 | £500,000 |
| Very large entity (UK revenue more than £1bn) / Band D | £1,000,000 | £1,000,000 |
Note 22: the Economic Crime Levy (ECL) is an annual charge on entities supervised under the Money Laundering Regulations (MLR) whose UK revenue exceeds £10.2m a year.
Making Tax Digital for Income Tax (MTD for ITSA)
| Start date | Qualifying income over |
|---|---|
| From April 2026, based on qualifying income in 2024/25 | £50,000 |
| From April 2027, based on qualifying income in 2025/26 | £30,000 |
| From April 2028, based on qualifying income in 2026/27 | £20,000 |
Part 5: Stamp duty land taxes across the UK
England and Northern Ireland: Stamp Duty Land Tax (SDLT)
Residential properties from 1 April 2025
| Property value | UK resident: only property | UK resident: additional property | Non-UK resident: only property | Non-UK resident: additional property |
|---|---|---|---|---|
| Up to £125,000 | Nil | 5% | 2% | 7% |
| Next portion from £125,001 to £250,000 | 2% | 7% | 4% | 9% |
| Next portion from £250,001 to £925,000 | 5% | 10% | 7% | 12% |
| Next portion from £925,001 to £1,500,000 | 10% | 15% | 12% | 17% |
| Remaining amount above £1,500,000 | 12% | 17% | 14% | 19% |
First-time buyers from 1 April 2025
| Property value | Rate of tax |
|---|---|
| Up to £300,000 | Nil |
| Next portion from £300,001 to £500,000 | 5% |
| Remaining amount above £500,000 | Standard rates apply (see above) |
Non-residential or mixed-use properties from 17 March 2016
| Property or lease premium or transfer value | Rate of tax |
|---|---|
| Up to £150,000 | Nil |
| Next portion from £150,001 to £250,000 | 2% |
| Remaining amount above £250,000 | 5% |
New leasehold properties: SDLT on the net present value (NPV) of rent
| Residential property (from 1 April 2025) | Non-residential or mixed-use (from 17 March 2016) | Rate of tax |
|---|---|---|
| Up to £125,000 | Up to £150,000 | Nil |
| Over £125,000 | Next portion from £150,001 to £5m | 1% |
| – | Over £5m | 2% |
Note 1: from 1 April 2016, higher rates of SDLT apply on purchases of additional properties by individuals. This rate is also payable by companies and other entities.
Note 2: from 1 April 2021, non-UK residents purchasing residential property in England and Northern Ireland pay a 2% SDLT surcharge in addition to the main rates payable by UK residents.
Note 3: higher rates do not apply when replacing a main residence, subject to meeting certain conditions, or for purchases under £40,000.
Note 4: sliding-scale rates do not apply when residential property is acquired for more than £500,000 by certain corporates and “non-natural persons” (companies, partnerships with a company as a partner, and collective investment schemes). Instead, these entities pay a flat rate of 17% SDLT from 31 October 2024, or 19% for non-UK resident entities, subject to relief for qualifying activities or bodies. Non-natural persons may also be subject to the Annual Tax on Enveloped Dwellings (ATED).
Note 4a: from 1 May 2026, no SDLT is payable on the net present value of the rent under an assured tenancy.
Scotland: Land and Buildings Transaction Tax (LBTT)
Residential properties from 5 December 2024
| Property or lease premium or transfer value | Only property rates | Additional property rates (note 5) |
|---|---|---|
| Up to £145,000 | Nil | 8% |
| Next portion from £145,001 to £250,000 | 2% | 10% |
| Next portion from £250,001 to £325,000 | 5% | 13% |
| Next portion from £325,001 to £750,000 | 10% | 18% |
| Remaining amount over £750,000 | 12% | 20% |
First-time buyers (from 1 April 2021)
| Property value | Rate of tax |
|---|---|
| Up to £175,000 | Nil |
| Remaining amount above £175,000 | Standard rates apply (see above) |
Non-residential or mixed-use properties (from 25 January 2019)
| Property or lease premium or transfer value | Rate of tax |
|---|---|
| Up to £150,000 | Nil |
| Next portion from £150,001 to £250,000 | 1% |
| Remaining amount over £250,000 | 5% |
Non-residential leasehold properties: NPV of rent (from 7 February 2020)
| NPV of rent payable | Rate of tax |
|---|---|
| Up to £150,000 | Nil |
| Next portion from £150,001 to £2m | 1% |
| Remaining amount over £2m | 2% |
Note 5: the higher rate (Additional Dwelling Supplement) does not apply when replacing a main residence, subject to meeting certain conditions, or for purchases under £40,000. The 8% rate applies to transactions entered into on or after 5 December 2024.
Wales: Land Transaction Tax (LTT)
Residential properties
| Property value | Only property rates (from 10 October 2022) | Additional property rates (from 11 December 2024) |
|---|---|---|
| Up to £180,000 | Nil | 5% |
| Next portion from £180,001 to £225,000 | Nil | 8.5% |
| Next portion from £225,001 to £250,000 | 6% | 8.5% |
| Next portion from £250,001 to £400,000 | 6% | 10% |
| Next portion from £400,001 to £750,000 | 7.5% | 12.5% |
| Next portion from £750,001 to £1.5m | 10% | 15% |
| Remaining amount over £1.5m | 12% | 17% |
Non-residential or mixed-use properties (from 22 December 2020)
| Property or lease premium or transfer value | Rate of tax |
|---|---|
| Up to £225,000 | Nil |
| Next portion from £225,001 to £250,000 | 1% |
| Next portion from £250,001 to £1m | 5% |
| Remaining amount over £1m | 6% |
Non-residential leasehold properties: LTT on NPV of rent (from 22 December 2020)
| NPV of rent payable | Rate of tax |
|---|---|
| Up to £225,000 | Nil |
| Next portion from £225,001 to £2m | 1% |
| Remaining amount over £2m | 2% |
Stamp duty on shares and securities
Stamp duty payable on the transfer of shares and securities is 0.5%, subject to the value of the consideration being above £1,000.
For transactions on or after 27 November 2025, an exemption applies from the 0.5% Stamp Duty Reserve Tax (SDRT) charge on agreements to transfer securities of a company whose shares are newly listed on a UK regulated market.
How Taxlab can help
If you would like to discuss how the Autumn Budget 2026 affects you or your business, contact us, call 0845 862 6009 or message us on WhatsApp. You can also read our own summary: Budget 2026: key points for small businesses, landlords and individuals.
Credit and legal notice
Content reproduced from guides prepared by ACCA UK’s Technical Advisory Service for members and their clients (October 2026): “A guide to the Autumn Budget 2026”, “Autumn Budget 2026: tax rates and allowances” and “Autumn Budget 2026: Stamp duty land taxes: UK”. © ACCA. Visit accaglobal.com.
ACCA legal notice: this is a basic guide prepared by ACCA UK’s Technical Advisory Service for members and their clients. It should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained where necessary. The stamp duty land taxes factsheet is for guidance purposes only and is not a substitute for obtaining specific legal advice. While every care has been taken in its preparation, neither ACCA nor its employees accept any responsibility for any loss occasioned by reliance on its contents.