Autumn Budget 2026: Trading allowance
The current £1,000 tax-free trading and miscellaneous income allowance will be increased to £3,000 from 6 April 2027. The allowance is expected to operate in the same way as before with individuals being able to choose to deduct the allowance from their turnover instead of claiming actual business expenses. There is, however, no similar increase to the property income allowance, which remains at £1,000.
The Income Tax Self Assessment reporting threshold for trading income previously announced to be increased to £3,000 by the end of this Parliament will now be implemented from 6 April 2027.
