The Autumn Budget landed after weeks of speculation and more than a few surprises. What many expected to be a single, major tax rise instead became a series of smaller, targeted measures – some of which will be felt more quickly than others. The headlines may have focused on political twists, but for business owners, landlords and working families, what matters is what actually changes from here.
A number of announcements will influence how businesses plan for payroll, investment and remuneration over the next few years, while individuals will see shifts in areas like savings, benefits and household budgeting. Below, we break down the key measures, so you can understand what’s changed and start preparing for the year ahead.
Income Tax and National Insurance threshold freeze extended to 2031
The freeze on income tax and NIC thresholds will continue for an extra three years. More people will move into higher tax bands as wages rise – without any change to headline rates.
What you can expect: Expect higher overall tax bills even if your income hasn’t increased significantly. Directors who take a mix of salary and dividends should review their strategy.
Salary sacrifice pension contributions capped
From April 2029, only the first £2,000 of salary-sacrificed pension contributions will remain exempt from employer and employee NICs. Anything above becomes subject to NICs.
What you can expect: This affects higher earners and businesses using salary sacrifice as a planning tool. It’s worth reviewing pension arrangements well before 2029.
Dividend, savings and property income tax rates increasing
Tax on dividends, savings income, and property income will rise by 2 percentage points from April 2026.
What you can expect: Owner-managers who rely on dividends will feel this – remuneration strategies should be reviewed. Landlords and investors can expect higher tax bills from 2026.
Permanent business rates support for retail, hospitality and leisure
Three-quarters of a million properties will benefit from reduced rates. This comes alongside higher rates for large distribution and warehousing sites.
What you can expect: Good news if you’re in retail, hospitality or leisure. If you operate large commercial properties, budgeting ahead will be important.
Corporation tax – Writing down allowance reduced
The main writing-down allowance for plant and machinery will decrease to 14%, changing the timing of tax relief. Full expensing remains in place for most investment and a new 40% first year allowance will be introduced from January 2026.
A new advanced assurance pilot for R&D will be launched in Spring 2026 allowing companies to gain clarity prior to submission of any claim.
EMI scheme company eligibility limits are to be raised but we await further detail as to what the changes are.
Corporation tax late filing penalties are also doubling from April 2026.
What you can expect: Capital investment is still encouraged, but relief may be claimed more slowly in some cases. Useful to plan ahead for cashflow.
New road pricing for electric vehicles
From 2028:
- 3p per mile for electric cars
- 1.5p per mile for plug-in hybrids
This charge will sit alongside standard vehicle excise duty from April 2028.
What you can expect: If you run an electric fleet, factor this into long-term vehicle planning – especially for high-mileage businesses.
Fuel duty freeze extended to September 2026
The current 5p cut remains until 2026. After that, fuel duty will rise with inflation.
What you can expect: Short-term savings continue. Transport-heavy businesses should prepare for higher fuel costs from late 2026.
National Minimum Wage & Living Wage increases
From April 2026:
- £12.71 (21+)
- £10.85 (18–20)
- £8.00 (16–17)
- £8.00 apprentice rate
What you can expect: Payroll costs will rise, particularly in sectors with large hourly workforces. Now is the time to review staffing budgets.
Cash ISA Allowance Reduced for Under-65s
- Cash ISA limit drops from £20,000 to £12,000 for under-65s from April 2027.
- The full £20,000 allowance still exists – but £8,000 of it must now be invested rather than held as cash.
- Over-65s keep the £20,000 cash allowance.
What you can expect: Savers will need to rethink how they use ISAs, especially if you typically maximise cash allowances each year.
Customs duty will apply to all parcels
Duty will apply to parcels of any value. This is aimed at levelling the playing field for UK retailers by March 2029.
What you can expect: E-commerce businesses importing low-value goods will see higher costs. Those competing with overseas sellers may benefit from this.
Business investment & growth measures
The government is introducing:
- Increase in VCT and EIS limits allowing investors to follow on as companies grow beyond the start-up phase however income tax for VCT investments will be reduced from 30% to 20%.
- A three-year stamp duty exemption for UK stock exchange listings
- A consultation on how to attract and retain founders allowing them to scale businesses in the UK.
- £725 million for the Growth and Skills Levy to help support apprenticeships for young people, including a change to fully fund SME apprenticeships for eligible people under 25.
What you can expect: Support is increasing for businesses looking to grow, raise finance, or list in the UK. Useful for companies planning significant investment.
Regional investment across the UK
Funding has been announced to support projects across Wales, Scotland and Northern Ireland, including AI growth zones and low-carbon investment.
What you can expect: Relevance will depend on your location or supply chain, but regional development funding is likely to create opportunities for businesses working with public sector or large infrastructure projects.
Inheritance tax
The freeze on IHT nil rate band, residence nil rate band and 100% Business Relief and Agricultural Property Relief will continue to April 2031.
Business Relief and Agricultural Property Relief 100% relief bands will allow any unused allowance to be transferred between spouses and civil partners from April 2026
What you can expect: Careful planning is needed to make full use of these allowances.
What to do next
If you’re unsure how any of these changes affect you or your business, we’re here to help. Your usual bk plus advisor can walk you through the numbers, review your tax position, and make sure you’re prepared for what’s coming.
Full Budget guide arrives tomorrow…
We’ll be releasing a detailed breakdown of every measure – what’s changed, who’s affected, and the practical steps you may need to take.
Want it delivered straight to your inbox? Sign up here