Tax
Autumn Budget 2026
Tax brought to light
Your source for expert commentary.
Read our analysis and key takeaways from the Autumn Budget.
Our tax experts.
Our tax specialists have reviewed the Chancellor’s announcements and provide practical insight into the implications for businesses, individuals and employers.
At a glance: Key headlines summarised by Hazlewoods tax experts
- Debt to GDP: 83.2% this year; 83.8% 2027/28; 83.8% 2028/29; 83.1% 2029/30; 82.3% 2030/31; 81.7% 2031/32.
- Debt forecast – percentage borrowing: 4.2% 2026/27; 3.4% 2027/28; 2.9% 2028/29; 2.1% 2029/30; 1.8% 2030/31; 1.8% 2031/32.
- The latest OBR growth forecasts: 1.2% 2026/27; 1.0% 2027/28; 1.6% 2028/29; 1.8% 2029/30; 1.7% 2030/31; 1.6% 2031/32.
- Predicted increase in debt interest cost of £14 billion.
- Council house commitment – extra £1.5 billion added to a total funding promise of £40 billion.
- VAT cut on electricity extended through to July 2027, taking £50 off the annual price cap.
- Increasing fuel mileage rate for business mileage over 10,000 to 35p (from 25p) per mile and the previous temporary mileage rate change for up to 10,000 miles of 55p to be made permanent.
- The UK government has extended the temporary 5p per litre fuel duty cut through to July 2027.
- Entertaining, retail and hospitality venues to get 20% reduction in rates from next year, as already announced, plus a new announcement being an increase in the small business rates relief from £12,000 to £18,000 per annum.
- Business asset disposal relief (BADR) lifetime limit reduced from £1 million to £500,000.
- Savings and property tax increased by a further 2% from April 2027, to marginal rates of 24%, 44% and 49%.
- No further change to dividend taxes.
- Reforming the payment of self-assessment taxes from April 2029/30 to require smaller, more regular payments, to fall in line with those already paying via PAYE.
- Changes to capital allowances from April 2027: First Year Allowances rate to increase from 40% to 50%; Decrease in the capital allowances main pool rate from 14% to 12%.
- 3% addition to bank surcharge to last for 15 months starting in January.
- Trading allowance increased from £1,000 to £3,000.
- ISA annual allowance to remain at £20,000, with no restriction to cash savings. Also looking to provide a new ‘starter ISA’ to encourage investing.
- No tax will be paid by pensioners on an amount up to the full new state pension amount.
- New ‘founders’ relief’ to be introduced, with a 10% rate on lifetime capital gains up to £10 million for the founders of Britain’s most successful firms.
- EMI scheme version 2 announced ‘doubling generosity’ of the existing scheme.
- A new first-time buyer ISA is to replace the lifetime ISA. Penalties will be withdrawn from existing lifetime ISAs if used to purchase a home above the existing threshold, so buyers will be able to take out at least what they put into the ISA.
- Standing charges abolished for domestic gas bills from next year, saving £100 per household, and a similar move for electricity under consultation.
- Road map for fiscal devolution: By the end of the decade, devolved areas will retain 100% of business rates, with 20% made available to the Mayors from 2027 and a share of income tax to be made available to Mayors from 2028. Local authorities will also be given the power to introduce a visitor levy.
