Autumn Budget 2026: Directors and Landlords
The Budget on 28 October 2026 left the headline rates of income tax, National Insurance, VAT, dividends and corporation tax alone, and raised tax on income from assets instead: from 6 April 2027 savings interest and rental profit are taxed at 24%, 44% and 49%, four points above the rates on earnings. Thresholds stay frozen to 2031. Below, worked examples, what it means for directors, landlords and small companies, and a calculator for your own figures.
Three people, worked through
| Who | Tax in 2025-26 | Tax in 2030-31 | Change a year | Of which Budget 2026 |
|---|---|---|---|---|
| A company director paying themselves a £12,570 salary and £50,000 in dividendsTax on dividends up 2 points from 2026-27 | £7,406 | £8,396 | +£990 | £0 |
| A director on the same pay with £5,000 of personal savings interestTax on dividends up 2 points from 2026-27 | £8,656 | £9,646 | +£990 | £0 |
| A landlord earning £30,000, with £15,000 of rental profit and £5,000 of mortgage interestTax on rental profit up a further 2 points from 2027-28 | £5,486 | £5,986 | +£500 | +£500 |
| A higher-rate earner on £60,000 with £5,000 of savings interest outside an ISATax on savings interest up a further 2 points from 2027-28 | £13,232 | £13,412 | +£180 | +£180 |
Income tax on the same income each year, rules for England, Wales and Northern Ireland, including measures announced but not yet law. Not financial advice.
Directors, landlords and small companies
Company directors
Salary and dividends are taxed as before: the dividend rates of 10.75%, 35.75% and 39.35% and the £500 allowance are unchanged, so the salary and dividend split works out as it did. What changes is money held personally: interest outside an ISA is taxed 4 points higher from April 2027. Selling the company later costs more above £500,000 of lifetime gains, where Business Asset Disposal Relief stops. The rules on how distributions are taxed are being rewritten for April 2028; the rates are not.
Salary vs dividends calculator · Mileage allowance calculator
Landlords
Rental profit in England, Wales and Northern Ireland is taxed at 24%, 44% and 49% from 6 April 2027, and the personal allowance is used against earnings first, so more rent meets a rate. Mortgage interest relief stays at 22% in law for now; the Budget did not say whether it rises. Landlords joining Making Tax Digital in April 2027 get no penalty points on their first four quarterly updates.
Small companies and the self-employed
Corporation tax stays at 25%, with 19% on profits up to £50,000. Plant and machinery in the main pool gets a 50% first-year allowance from 1 January 2027, the main writing-down allowance falls to 12% from April 2027, and full expensing and the £1 million AIA stay. The trading allowance triples to £3,000, the 55p mileage rate is permanent and the rate above 10,000 miles rises to 35p, both from April 2027. Retail, hospitality and leisure premises in England get full small business rates relief up to £18,000 of rateable value.
Work out yours
Your figures for a year
Amounts for a whole tax year. Leave anything that does not apply at 0. Nothing you type leaves this page.
Changes already in law, 2025-26 to 2030-31
No change
Your income tax on these figures goes from £0 in 2025-26 to £0 in 2030-31, on the same income every year.
Your income tax, year by year
| Tax year | Rules | Income tax | Change |
|---|---|---|---|
| 2025-26 | Last year | £0 | |
| 2026-27 | This year | £0 | none |
| 2027-28 | Announced, not yet law | £0 | none |
| 2028-29 | Announced, not yet law | £0 | none |
| 2029-30 | Announced, not yet law | £0 | none |
| 2030-31 | Announced, not yet law | £0 | none |
Other changes, and whether they reach you
Unused pensions count towards the estate for inheritance tax
Not knownFrom 6 April 2027, Autumn Budget 2024. Not known from your figures: the value of your pension savings.
VCT income tax relief cut from 30% to 20%
Not knownFrom 6 April 2026, Autumn Budget 2025. Not known from your figures: whether you subscribe to VCTs.
Income tax thresholds frozen for three more years, to April 2031
Does not applyFrom 6 April 2028, Autumn Budget 2025. On the same income the freeze changes nothing. Each extra pound of earnings is taxed at 0% at your income, and the bands will not rise to meet it before 6 April 2031.
High Value Council Tax Surcharge on homes worth £2m or more
Not knownFrom 1 April 2028, Autumn Budget 2025. Not known from your figures: the value of homes you own in England.
National Insurance on salary-sacrificed pension above £2,000
Not knownFrom 6 April 2029, Autumn Budget 2025. Not known from your figures: whether you sacrifice salary into a pension.
How this is worked out
- The same income in every year: £0 of earnings, £0 of rental profit, £0 of interest and £0 of dividends. Each difference is therefore a change in the rules, not in you.
- Rates for England, Wales and Northern Ireland. A Scottish taxpayer's earnings and rent go through Scotland's own bands: choose Scotland to see them.
- Interest and dividends are the TAXABLE amounts, outside ISAs and pensions, which these changes do not reach.
Not included
- National Insurance, which these measures leave unchanged for employees, apart from the salary sacrifice limit checked separately.
- Capital gains on a sale, which depend on the sale; the rates are in the tables and apply when one is made.
- Unused finance costs carried forward, the High Income Child Benefit Charge, student loan repayments and the marriage allowance.
- Growth in income. Under frozen thresholds a rise is taxed at the marginal rate it reaches; see the thresholds check.
Information about the rules, not advice about what to do. Rates are those in law, or announced where marked, for England, Wales and Northern Ireland.
Every measure, and when it lands
Monday 6 April 2026 (2026-27) · Law · Autumn Budget 2024
Business Asset Disposal Relief rate rises to 18%
Gains qualifying for Business Asset Disposal Relief are taxed at 18%, up from 14% in 2025-26 and 10% before that.
Finance Act 2025
Monday 6 April 2026 (2026-27) · Law · Autumn Budget 2025
Tax on dividends up 2 points
The dividend ordinary rate rises from 8.75% to 10.75% and the upper rate from 33.75% to 35.75%. The additional rate stays at 39.35% and the £500 allowance is unchanged.
Finance Act 2026
Monday 6 April 2026 (2026-27) · Law · Autumn Budget 2025
VCT income tax relief cut from 30% to 20%
Up-front income tax relief on new Venture Capital Trust subscriptions falls from 30% to 20%. EIS relief stays at 30%, and the limits on what EIS and VCT companies may raise doubled.
Finance Act 2026
Friday 1 January 2027 (2026-27) · Announced · Autumn Budget 2026
Main-rate first-year allowance up to 50%, writing-down allowance cut to 12%
Main-pool plant and machinery bought from 1 January 2027 gets a 50% first-year allowance, up from 40%. The main writing-down allowance falls from 14% to 12% from 1 April 2027 for companies and 6 April 2027 for income tax. Full expensing and the £1 million AIA are unchanged.
Announced at Autumn Budget 2026; Finance Bill 2026-27 to follow
Thursday 1 April 2027 (2026-27) · Announced · Autumn Budget 2026
Small business rates relief extended for retail, hospitality and leisure
Qualifying retail, hospitality and leisure properties in England get 100% small business rates relief up to a rateable value of £18,000 (from £12,000) and tapered relief up to £21,000 (from £15,000).
Announced at Autumn Budget 2026; business rates, England
Tuesday 6 April 2027 (2027-28) · Law · Autumn Budget 2024
Unused pensions count towards the estate for inheritance tax
Most unused pension funds and pension death benefits are included in the value of an estate for inheritance tax. Passing to a spouse, civil partner or charity stays exempt.
Finance Act 2026
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Tax on savings interest up a further 2 points
Savings income is taxed at 24%, 44% and 49% from 6 April 2027, against 20%, 40% and 45% now and the 22%, 42% and 47% set at Autumn Budget 2025. The personal savings allowance and the £5,000 starting rate are unchanged. UK-wide.
Announced at Autumn Budget 2026; Finance Bill 2026-27 to follow
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Tax on rental profit up a further 2 points
Property income is taxed at 24%, 44% and 49% from 6 April 2027 in England, Wales and Northern Ireland, against the 22%, 42% and 47% set at Autumn Budget 2025. The Budget did not say whether mortgage interest relief rises from 22% with it.
Announced at Autumn Budget 2026; Finance Bill 2026-27 to follow
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Cash ISA limit stays at £20,000
The planned cut of the cash ISA limit to £12,000 will not happen; the whole £20,000 allowance may still go into cash.
Announced at Autumn Budget 2026, replacing the £12,000 cash limit announced at Autumn Budget 2025
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Business Asset Disposal Relief lifetime limit halved to £500,000
Gains qualifying for the 18% Business Asset Disposal Relief rate are capped at £500,000 over a lifetime, down from £1 million. Gains above it are taxed at the main CGT rates.
Announced at Autumn Budget 2026; Finance Bill 2026-27 to follow
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
New Founders' Relief: 10% CGT on up to £10 million
Qualifying founders of high-growth, innovative companies pay 10% CGT on up to £10 million of lifetime gains. Who qualifies is still being consulted on.
Announced at Autumn Budget 2026; design under technical consultation, Finance Bill 2026-27 to follow
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Trading allowance tripled to £3,000
Up to £3,000 a year of trading and miscellaneous income is tax free, up from £1,000.
Announced at Autumn Budget 2026; Finance Bill 2026-27 to follow
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Mileage rate above 10,000 business miles up from 25p to 35p
The 55p rate for the first 10,000 business miles in a car or van is made permanent, and the rate above 10,000 miles rises from 25p to 35p, for employees and the self-employed.
Announced at Autumn Budget 2026; legislation to follow
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
No penalty points for the first four MTD updates in 2027-28
People joining Making Tax Digital for Income Tax in April 2027 get no late-submission penalty points on their first four quarterly updates. Roll-out to several other groups is deferred until further notice.
Announced at Autumn Budget 2026
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Mandatory payrolling of company cars and medical benefits delayed to April 2027
Employers must payroll company cars, vans, fuel and medical benefits from 6 April 2027 instead of 2026, and every other benefit in kind from 6 April 2028.
Announced at Autumn Budget 2026
Tuesday 6 April 2027 (2027-28) · Announced · Autumn Budget 2026
Pensioners with income up to the full new State Pension pay no income tax
A Pension Tax Allowance removes the income tax due where a person over State Pension age has total income up to the full new State Pension, tapered just above it, from 6 April 2027 to 5 April 2030.
Announced at Autumn Budget 2026; Finance Bill 2026-27 to follow
Saturday 1 April 2028 (2027-28) · Announced · Autumn Budget 2025
High Value Council Tax Surcharge on homes worth £2m or more
An annual charge on homes in England valued at £2m or more at 2026 prices: £2,500 up to £2.5m, £3,500 up to £3.5m, £5,000 up to £5m and £7,500 above, rising with CPI.
Announced at Autumn Budget 2025; subject to consultation
Thursday 6 April 2028 (2028-29) · Law · Autumn Budget 2025
Income tax thresholds frozen for three more years, to April 2031
The personal allowance stays at £12,570 and the higher-rate threshold at £50,270 until 5 April 2031. On the same income the bill does not change; any rise in income meets the top rate it reaches, with no uplift to the bands.
Finance Act 2026
Thursday 6 April 2028 (2028-29) · Announced · Autumn Budget 2026
Rules on company distributions to be rewritten
How distributions from companies to individual shareholders are taxed will follow one framework regardless of legal form or structure, keeping capital treatment for genuine changes of ownership. Dividend tax rates are not changed.
Announced at Autumn Budget 2026; draft legislation for consultation in 2027
Friday 6 April 2029 (2029-30) · Announced · Autumn Budget 2025
National Insurance on salary-sacrificed pension above £2,000
Only the first £2,000 a year of pension contributions made by salary sacrifice stays free of National Insurance, for employees and employers alike.
Announced at Autumn Budget 2025; National Insurance legislation separate from the Finance Act
Your own figure, from your own accounts
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Questions
- What did the Autumn Budget 2026 change for small companies and directors?
- Corporation tax stays at 25% (19% small profits rate) and dividend tax rates are unchanged. Business Asset Disposal Relief keeps its 18% rate but the lifetime limit halves to £500,000 from 6 April 2027. The main-rate first-year allowance rises to 50% from 1 January 2027 and the main writing-down allowance falls to 12% from April 2027. A new Founders' Relief charges 10% CGT on up to £10 million of gains for qualifying founders of high-growth companies.
- How much more dividend tax do I pay in 2026-27?
- From 6 April 2026 the dividend ordinary rate is 10.75% and the upper rate 35.75%, each 2 points higher than in 2025-26. The additional rate stays at 39.35% and the first £500 of dividends is still tax free. A basic-rate taxpayer pays £20 more for every £1,000 of dividends above the allowance.
- When does tax on savings interest go up?
- From 6 April 2027 savings interest outside an ISA is taxed at 24%, 44% and 49% instead of 20%, 40% and 45%: 2 points set at Autumn Budget 2025 and 2 more announced at Autumn Budget 2026. The personal savings allowance of £1,000 for basic-rate and £500 for higher-rate taxpayers is unchanged.
- Does tax on rental income change?
- Yes, from 6 April 2027 in England, Wales and Northern Ireland. Property income is taxed at 24%, 44% and 49% as announced at Autumn Budget 2026, and the personal allowance is set against earnings before rent. Mortgage interest relief is 22% in Finance Act 2026; the Budget did not say whether it rises with the new rates, and this page keeps it at 22% until the Finance Bill says otherwise.
- Are income tax thresholds frozen?
- Yes. The personal allowance stays at £12,570 and the higher-rate threshold at £50,270 until 5 April 2031. On the same income the bill does not change, but any rise in income is taxed at the top rate it reaches.
- Is the cash ISA limit changing?
- No. The £12,000 cash limit announced at Autumn Budget 2025 was dropped at Autumn Budget 2026, so the whole £20,000 allowance may still go into cash.
- Is the Autumn Budget 2026 law yet?
- Not yet. Its measures are announced and will be legislated in Finance Bill 2026-27, so they are marked Announced here until Royal Assent. Details can change before then.
Information about the tax rules, not financial or tax advice. Figures are income tax only, on the rules in law or announced where marked. The worked examples are for England, Wales and Northern Ireland; the calculator also applies Scotland's bands, to the last year the Scottish Parliament has set. CoreFi is a trading name of JG Core Ltd.