Chancellor John Healey delivered Budget 2026 earlier today (28 October). He described it as giving "families and businesses breathing space" from rising costs, with action on energy bills, fuel duty and wages, while meeting the government's fiscal rules. For business owners, landlords and savers, though, there are some important tax changes to plan for, most of them taking effect from April 2027.
At RJ Financial, we specialise in supporting SMEs and individuals through changes like these. Here's a round-up of the key points, with practical impacts and next steps.
Personal Tax, Savings and Property
Savings and property income: From April 2027, rates rise by a further two percentage points across all bands, to 24% (basic), 44% (higher) and 49% (additional) in England, Wales and Northern Ireland. Action: Landlords should review how their portfolio is owned and structured before April 2027.
National Insurance: For 2027/28 the Lower Earnings Limit is £6,916 and the Class 2 Small Profits Threshold is £7,355. All other limits stay frozen until 2030/31.
Trading Allowance: This rises from £1,000 to £3,000 from 6 April 2027, and the Self Assessment reporting threshold rises with it. Opportunity: Good news for anyone with a small side income.
Employment expenses: The £2,500 Self Assessment threshold for claiming non-reimbursed expenses is removed from April 2028.
ISAs: The cash ISA limit stays at £20,000. A new First Time Buyer ISA replaces the Lifetime ISA for new savers from April 2029, with a 25% bonus on balances up to £20,000 for homes worth up to £450,000. From 29 October 2026, the Lifetime ISA withdrawal charge for homes above the cap falls from 25% to 20%.
Capital Gains and Selling Your Business
Business Asset Disposal Relief: The lifetime limit is cut from £1m to £500,000 for disposals made on or after 6 April 2027. Action: If you're planning an exit, talk to us now about timing.
New Founders' Relief: A new lower CGT rate for qualifying founders and early investors in high-growth companies applies from 6 April 2027. The consultation closes on 30 November 2026.
Inheritance Tax and Pensions
Pensions: As already legislated, most unused pension funds come into the scope of IHT from 6 April 2027. Personal representatives will be able to direct schemes to pay the IHT due.
Trusts: New restrictions on deducting liabilities when valuing trust property apply from 28 October 2026.
Business
Corporation Tax: The main rate stays at 25% and the small profits rate at 19% for the financial year beginning 1 April 2028.
Capital allowances: The main rate first-year allowance rises to 50% for spending from 1 January 2027, and the main writing-down allowance falls to 12% from April 2027. Tip: Plan the timing of major purchases.
Business rates (England): Rates for retail, hospitality and leisure properties will be frozen in real terms, reduced or cut to zero. A higher Small Business Rates Relief threshold takes around 70,000 more of these businesses out of rates altogether.
National Living Wage: This rises 3.9% to £13.21 an hour from 1 April 2027. Action: Build it into your payroll budgets and pricing now.
Online marketplaces: From October 2027, platforms will collect VAT on qualifying sales by UK businesses.
Parental pay: This is extended to more than 160,000 additional parents, including self-employed dads and partners.
Travel and Energy
Fuel duty: The 5p cut is extended to 30 June 2027. Rates then return to pre-2022 levels and rise with RPI.
Mileage rates: Tax-free mileage rates become permanently more generous, benefiting around 3 million employees and self-employed people.
Energy bills: Up to 20 million households in council tax bands A–D in England get a £100 payment in 2027. The temporary VAT cut on electricity is extended to 1 July 2027.
What Next?
Many of these changes start in April 2027, which leaves time to plan, especially around property income, business sales and capital spending. To find out how Budget 2026 affects you or your business, get in touch with the RJ Financial team. New clients can book a free tax review.
This article is a summary based on the government's Budget 2026 publications and is not a substitute for personalised advice.