Upload new blog “Autumn Budget 2026: What It Means for Your Business? “

Short Answer: The Autumn Budget 2026 lands on Wednesday 28 October, delivered by Chancellor John Healey under new PM Andy Burnham. Income tax, National Insurance and VAT rates are protected by a manifesto pledge, so speculation is centred on capital gains tax, inheritance tax, property taxes and a possible social care levy. Nothing is confirmed until Healey sits down, so plan around what's already law, not what's trending on LinkedIn.

Key Takeaways

• The Autumn Budget 2026 date is confirmed: Wednesday 28 October 2026, roughly a month earlier than last year's Budget.
• Income tax, National Insurance and VAT rates are protected under Labour's 2024 manifesto pledge, so don't expect headline rate rises there.
• Capital gains tax is the area advisers flag most consistently as a likely target for change.
• Business property relief (BPR) changes already confirmed from April 2026 cap relief at £2.5 million per individual, a genuine planning issue if you're hoping to pass on a business IHT-free.
• The  (High Value Council Tax Surcharge) is confirmed from April 2028 for homes worth £2 million-plus, with speculation it could drop to a £1.5 million threshold.
• Writing-down allowances fall from 18% to 14% from April 2026, while a new 40% first-year allowance kicks in for qualifying leased assets from January 2026.

If you've ever sat across a desk from an accountant in the week before a Budget, you'll know the feeling: half your clients want to make a decision right now because of something they read online, and the other half want to do nothing at all and hope it blows over. Neither approach is quite right. Here's what's actually confirmed for 28 October, what's genuinely worth watching, and what you can safely ignore.

When is the Autumn Budget 2026?

The Autumn Budget 2026 date is Wednesday 28 October 2026. Chancellor John Healey confirmed this on 31 July 2026, and the Office for Budget Responsibility (OBR) will publish its updated Economic and Fiscal Outlook on the same day.

This is John Healey's first Budget since his appointment by new Prime Minister Andy Burnham, who entered Downing Street on 20 July 2026 after an unopposed leadership contest. Healey previously resigned as Defence Secretary in June 2026 over defence spending levels, and brings Treasury experience from junior ministerial roles held between 2002 and 2007.

The speech is typically delivered in the House of Commons shortly after Prime Minister's Questions, usually from around 12:30pm, and broadcast live on the BBC and ParliamentTV.

What to expect in the 2026 Budget?

Here's the honest answer: less has leaked this year than usual. But a few threads are consistent across tax advisers, financial planners and property specialists.

Burnham has said the Budget will deliver "growth in every postcode," which hints at fiscal devolution being a central theme, alongside measures the Treasury has already flagged: a 20% business rates cut for pubs, social clubs and live music venues from April 2027, and VAT removed from domestic electricity bills from 1 October 2026.

What's coming in the Budget in 2026? (Already Confirmed!)

This is the part that matters most for your actual planning, because these changes are locked in regardless of what Healey announces on the day.

1. Corporation tax and capital allowances:

• Corporation tax rates stay at 19% (profits under £50,000) and 25% (profits over £250,000), with marginal relief between the two, capped for the rest of this Parliament.
• Writing-down allowances on the main pool drop from 18% to 14% from April 2026. If you've been putting off a machinery or equipment purchase, buying before April gets you the better rate.
• A new 40% first-year allowance applies from January 2026 for qualifying new and unused plant and machinery used for leasing.
• Late filing penalties double from 1 April 2026, £200 instead of £100 for a three-month delay.

2. Dividend and director costs:

• Dividend tax rates rise by 2% from 6 April 2026: basic rate moves from 8.75% to 10.75%, higher rate from 33.75% to 35.75%. If you're planning a dividend extraction, bringing it forward into 2025/26 saves you the increase.
• The s455 charge on overdrawn director loan accounts follows the higher dividend rate, so it rises to 35.75% too.

3. Wages and payroll:

• National Living Wage rises to £12.71/hour (up 4.1%) from 1 April 2026.
• NMW for 18-20 year olds rises to £10.85/hour (up 8.5%); for 16-17s and apprentices, to £8.00/hour.
• Higher wage bills mean higher employer National Insurance contributions too — worth modelling now if you employ staff above NLW.

4. Inheritance tax:

• From April 2026, business property relief (BPR) is capped at £2.5 million per individual. Value above that only gets 50% relief, meaning up to 20% IHT on the excess. A £5 million business, for example, could generate a £500,000 IHT bill where previously there'd have been none.
• From April 2027, most unused pension pots are brought within the estate for IHT purposes; a genuine shift in how retirement and estate planning should work, since spending pension money first and preserving ISAs might now make more sense than the old logic.

5. Savings:

• The cash ISA allowance drops from £20,000 to £12,000 for under-65s from April 2027 (the overall £20,000 ISA allowance stays, it's just the cash portion that shrinks). Uninvested cash sitting in stocks and shares ISAs will be taxed at 22% from the same date.

How much would a 2p income tax rise actually raise?

Is a 2p Income Tax Rise Actually Happening?

Short answer: no, not for income tax itself.

There is currently no confirmed government plan to raise income tax rates in the Autumn Budget 2026. The manifesto pledge still stands: the main rates of income tax, National Insurance, and VAT are protected for working people, and every adviser tracking this Budget confirms that commitment hasn't shifted.

So what has actually changed by 2 percentage points?

That would be dividend tax, not income tax. From April 2026:

• The basic rate of dividend tax rises from 8.75% to 10.75%
• Higher rate dividend tax increases accordingly

Why does this matter for your business?

If you're a small business owner paying yourself through a combination of salary and dividends, which many limited company directors do, this change directly affects your take-home pay. It's worth revisiting your remuneration strategy with your accountant before April 2026.

A word of caution on the headlines

If you're seeing "2p income tax rise" circulating online, pause before acting on it. Check whether the source is referring to:

• Dividend tax (confirmed)
• National Insurance (separate changes apply)
• Income tax speculation (unconfirmed)

Conflating the three can lead to poor planning decisions. Until HM Treasury publishes the full Budget documents on 28 October, treat any revenue figure tied to an income tax rise as unverified speculation, not fact.

Business tax changes 2026: what small business owners and the self-employed need to watch

If you're running a limited company or working for yourself, these are the practical pressure points:

1. Capital allowances timing

With writing-down allowances dropping to 14% from April 2026, any equipment, vehicle or machinery purchase you've been sitting on is worth re-running the numbers on. Buy before the deadline, and you keep the 18% rate.

2. Associated company thresholds

If you own more than one company under common control, your corporation tax thresholds get divided by the number of associated companies. Two companies means your £250,000 upper limit becomes £125,000 each. HMRC has been sending "one-to-many" letters flagging this, so check your structure before you file.

3. Employee Ownership Trust disposals

CGT relief for disposals to Employee Ownership Trusts has already been cut from 100% to 50%, effective from 26 November 2025. If succession planning via an EOT was on your radar, the sums have changed.

4. Business rates

From April 2026, permanently lower multipliers apply to retail, hospitality and leisure properties, alongside a new high-value multiplier for larger premises. The relief is narrowly targeted, so don't assume your business automatically benefits.

5. Dividend extraction

With dividend tax rising 2% from April 2026, if you're a director planning a significant extraction, timing it before the tax year ends could be worth a genuine conversation with your accountant.

For the self-employed specifically, keep an eye on HMRC's "Timely Payments" consultation, which could eventually require more tax to be collected through the year rather than in lump sums each January and July. Nothing is confirmed, but if you're used to one big payment, it's worth knowing the direction of travel.

Stamp duty and property tax: what's genuinely on the table

Property has attracted the loudest speculation. The confirmed position is that the High Value Council Tax Surcharge (the so-called "mansion tax") applies from April 2028 to English homes worth £2 million or more, with charges ranging from £2,500 to £7,500 a year depending on value. Reports suggest the Autumn Budget could lower that threshold to £1.5 million, which analysis from Tax Policy Associates estimates would bring roughly 160,000 additional homes into scope — around 85% of them in London and the South East.

Separately, new property-income tax rates of 22%, 42% and 47% apply to landlords in England, Wales and Northern Ireland from April 2027. No decision has been confirmed on stamp duty itself, and the government has explicitly said there are no immediate plans to scrap it or council tax.

Autumn Budget 2026/27 state pension uprating

The triple lock is safe, Burnham has pledged to maintain it until 2030, so pensioners can expect the usual increase based on the higher of inflation, average earnings growth, or 2.5%.

What's genuinely under discussion is the state pension age, with the OBR suggesting the rise from 67 to 68 could be brought forward to between 2037 and 2039, well ahead of the currently legislated 2044.

That's a planning point for anyone in their 40s or 50s rather than an immediate concern, but worth knowing about if you're mapping out retirement.

FAQ about Autumn Budget 2026

When is the Autumn Budget 2026?

The Autumn Budget 2026 takes place on Wednesday 28 October 2026. It was confirmed by Chancellor John Healey on 31 July 2026, and the OBR will publish its updated Economic and Fiscal Outlook the same day.

Will income tax go up in the Autumn Budget 2026?

There's no confirmed plan to raise the main rates of income tax. Labour's 2024 manifesto pledge protects income tax, National Insurance and VAT rates for working people, and that commitment currently stands.

What's already confirmed for small businesses in 2026, regardless of the Budget?

Writing-down allowances drop to 14% from April 2026, dividend tax rises by 2% from the same date, late filing penalties double from 1 April 2026, and BPR for inheritance tax purposes is capped at £2.5 million per individual.

Should I make tax decisions based on Budget speculation?

Generally, no. The consistent advice from tax professionals is to separate your planning into three categories: rules already in force, changes already announced with confirmed future dates, and rumours that remain unconfirmed until the Chancellor actually speaks. Acting on the third category can create irreversible tax consequences if the change never materialises.

Who is affected by the mansion tax?

Currently, English homes worth £2 million or more from April 2028. If the threshold drops to £1.5 million as reported, an estimated 160,000 additional homes would be brought into scope.

Your next move with Debitam

Budget speculation sells headlines, but it doesn't file your tax return or protect your business from an unexpected IHT bill. The changes that are already law, capital allowances, dividend tax, BPR caps, late filing penalties, deserve your attention now, regardless of what gets announced on 28 October.

If you're staring at a corporation tax calculation, wondering whether your associated company structure still adds up, or trying to work out whether to bring a dividend forward before April, that's exactly the kind of thing Debitam deals with daily. No jargon, no hidden fees, no last-minute surprises, just clear guidance from people who've sat across the table from businesses exactly like yours before.

Talk to Debitam before the Budget lands, not after.