Autumn Budget 2026

What the Autumn Budget means for small businesses and landlords

The Chancellor delivered the Autumn Budget on 28 October 2026. These are the points that matter if you run a small business, work for yourself or let property.

General information, not advice. This page is general information, not advice. Budget announcements are not law until Parliament passes them, and details can change. Always check your own position with HMRC or ask us.

Published 31 October 2026.

  1. Making Tax Digital for Income Tax: no change

    The timetable stands. Sole traders and landlords with qualifying income over £30,000 join from 6 April 2027, and the threshold drops to £20,000 from April 2028. If your 2025/26 self-employment and property income is over £30,000, start keeping digital records now.

    Sole traders and landlords

  2. Property income: tax rates rise by 2 percentage points

    From 6 April 2027 the rates on property income become 24% basic, 44% higher and 49% additional (England, Wales and Northern Ireland). Savings income moves to the same rates. Individual landlords may want to review whether their current set-up still works.

    Landlords

  3. Trading allowance rises from £1,000 to £3,000

    From 6 April 2027 you can earn up to £3,000 from small trading or side income before tax. The threshold for reporting trading income on a tax return rises to £3,000 at the same time.

    Side income and new sole traders

  4. Self Assessment payments to be spread through the year

    From April 2029, people who make payments on account will pay more regularly during the year, automated by default. The 31 January filing deadline is not changing. Full details are due in 2027.

    Anyone who pays on account

  5. Business Asset Disposal Relief: lifetime limit halved

    For disposals on or after 6 April 2027 the lifetime limit falls from £1 million to £500,000. The 18% rate stays. If you are thinking of selling a business, timing now matters.

    Business owners planning a sale

  6. Capital allowances: first-year allowance up to 50%

    The main rate first-year allowance rises from 40% to 50% for spending on or after 1 January 2027. The main rate writing-down allowance falls to 12% from April 2027, so claiming in the first year becomes more valuable.

    Businesses buying equipment

What did not change

Income tax, National Insurance and VAT main rates are unchanged. Corporation tax stays capped at 25%. The National Living Wage rises to £13.21 an hour from 1 April 2027.

Sources

Dates that come out of the Budget are also on our key dates page.

Not sure how these affect you?

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