Updated 7 November 2026: The Autumn Budget on 28 October 2026 changed some of the measures below.
From 6 April 2027, rental and savings income will be taxed at 24%, 44% and 49%. These replace the 22%, 42% and 47% rates shown below.
The cash ISA limit stays at £20,000.
The first-year allowance rises from 40% to 50% from 1 January 2027.
The main writing-down allowance falls from 14% to 12% from April 2027.
The 5p fuel duty cut is extended to 30 June 2027.
See our post on the Autumn Budget 2026.
The Chancellor delivered the Autumn Budget on 26 November 2025. Most of the headline changes don't start straight away. Some begin in April 2026, and others not until 2027 or later.
This post sets out the measures most likely to affect small business owners, employers and landlords, with the date each one starts. Some still need to pass into law, so the detail could change.
For company owners and the self-employed
Dividend tax goes up by 2 percentage points from 6 April 2026. The basic rate rises from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%. The additional rate stays at 39.35%. This affects most directors who pay themselves in dividends.
Tax thresholds stay frozen until April 2031. The personal allowance stays at £12,570 and the higher rate threshold at £50,270 (outside Scotland), three years longer than planned. As incomes rise, more of your income is taxed at higher rates.
Capital allowances change. From 1 January 2026, a new 40% first-year allowance is available on qualifying new plant and machinery. Cars and second-hand assets are excluded. The main writing-down allowance falls from 18% to 14% from 1 April 2026 for companies and 6 April 2026 for the self-employed, with a blended rate if your accounting period spans the change. The £1 million Annual Investment Allowance stays, so most small businesses can still claim the full cost of equipment in the year they buy it.
Corporation Tax rates stay the same. 19% for small profits and 25% for the main rate, with marginal relief in between (limits depend on your accounting period and any associated companies).
Corporation Tax late filing penalties double for returns due on or after 1 April 2026. For example, the first penalty for a late return rises from £100 to £200.
Selling to an Employee Ownership Trust. From 26 November 2025, Capital Gains Tax relief on these sales is cut from 100% of the gain to 50%.
For employers
Minimum wage rates rise on 1 April 2026. The National Living Wage for workers aged 21 and over rises to £12.71 an hour. The rate for 18 to 20 year olds rises to £10.85, and for 16 to 17 year olds and apprentices to £8.00.
The employer National Insurance threshold stays at £5,000 until April 2031.
Salary sacrifice for pensions will be capped. From 6 April 2029, salary you sacrifice for pension contributions above £2,000 a year will attract employer and employee National Insurance. Ordinary employer pension contributions are not affected.
For landlords and savers
Tax on rental income rises by 2 percentage points from 6 April 2027. New property income rates of 22%, 42% and 47% will apply.
Tax on savings interest rises by 2 percentage points from 6 April 2027, to 22%, 42% and 47%.
The cash ISA limit falls to £12,000 from April 2027 for savers under 65. The overall ISA limit stays at £20,000.
Other changes
Business rates: in England, eligible retail, hospitality and leisure properties with a rateable value under £500,000 will pay permanently lower rates from April 2026. Because of the 2026 revaluation and other relief changes, some bills could still go up.
Electric cars: a per-mile charge for electric and plug-in hybrid cars is planned from April 2028.
Fuel duty: the 5p cut is extended to the end of August 2026.
What to do now
Directors: review your 2025/26 dividends before 6 April 2026, while the lower rates still apply. Take advice before paying more than usual.
Employers: budget for the new minimum wage rates from 1 April 2026.
Planning equipment purchases: check the timing against the allowance changes in January and April 2026.
Landlords: factor the 2027 rate rise into your plans.
Summary
The biggest changes for small business owners are higher dividend tax from April 2026, frozen tax thresholds until 2031 and new minimum wage rates. Landlords and savers face higher rates from April 2027.
If you would like us to look at how the Budget affects you, book a call or contact us.