The Chancellor delivered the Autumn Budget on 28 October 2026, announcing changes to Income Tax, Capital Gains Tax, cryptoassets, property income and the way individuals report and pay tax.
Some measures will take effect immediately, while others will start in April 2027 or later. The Budget also confirms several reforms that the government announced earlier this year.
For landlords, savers, sole traders and cryptoasset investors, the changes could affect future tax liabilities, available reliefs and reporting obligations.
This article covers the main announcements relevant to individuals and private clients. It draws on the government’s Budget 2026 tax legislation overview and official rates and allowances.
Where a measure requires legislation or further consultation, the article makes that distinction.
Income Tax on property and savings will rise from April 2027
One of the main personal tax announcements concerns rental profits and savings income.
From 6 April 2027, the government intends to introduce separate Income Tax rates for property income and increase the rates that apply to savings income.
| Income category | Basic rate | Higher rate | Additional rate |
|---|---|---|---|
| Property income | 24% | 44% | 49% |
| Savings income | 24% | 44% | 49% |
The property rates will apply in England, Wales and Northern Ireland, with separate consideration required for devolved rates. The savings rates will apply across the UK.
What does this mean for landlords?
Landlords will face higher Income Tax rates on taxable rental profits from 2027-28.
For example, consider a landlord with £10,000 of taxable rental profit that falls entirely within the basic-rate band.
| Calculation | 2026-27 | 2027-28 |
|---|---|---|
| Taxable rental profit | £10,000 | £10,000 |
| Applicable rate | 20% | 24% |
| Income Tax | £2,000 | £2,400 |
| Additional tax | £400 |
This simplified example assumes the full profit falls within the relevant basic-rate band and ignores other income, allowances, reliefs and finance-cost adjustments.
The proposed increase is four percentage points in each band. On the same amount of taxable rental profit, the additional tax from the rate increase alone is therefore the same in each band.
What about savings interest?
The same four-percentage-point increase will apply to the main savings Income Tax rates.
For example, a higher-rate taxpayer with £2,000 of taxable savings interest above any applicable allowances would pay £880 at 44%, compared with £800 at 40%.
The Personal Savings Allowance remains relevant. The Budget’s published rates retain the £1,000 allowance for basic-rate taxpayers and £500 for higher-rate taxpayers.
The new rates do not apply to savings income or rental profits arising in 2026-27.
HMRC: Budget 2026, sections 1.1 and 1.2
What happens to the main personal tax rates and allowances?
The Budget’s published 2027-28 tables retain the main Income Tax rates and several important personal tax allowances.
| Tax measure | 2027-28 |
|---|---|
| Basic-rate Income Tax | 20% |
| Higher-rate Income Tax | 40% |
| Additional-rate Income Tax | 45% |
| Personal Allowance | £12,570 |
| Personal Allowance withdrawal begins | £100,000 |
| Standard Capital Gains Tax rates | 18% and 24% |
| CGT annual exempt amount | £3,000 |
| Dividend ordinary rate | 10.75% |
| Dividend upper rate | 35.75% |
| Dividend additional rate | 39.35% |
| Dividend allowance | £500 |
The main Income Tax rates apply to relevant non-savings, non-property and non-dividend income in England, Wales and Northern Ireland. Scottish Income Tax rates operate separately.
The Personal Allowance will continue to reduce by £1 for every £2 of adjusted net income above £100,000.
This means the effective 60% marginal Income Tax rate associated with the withdrawal of the Personal Allowance will remain relevant for employment income between £100,000 and £125,140 in England, Wales and Northern Ireland, assuming no other income or relevant adjustments. Different rates can apply to other income and to Scottish taxpayers.
HMRC: Budget 2026 rates and allowances
Crypto tax changes: stablecoins, lending and liquidity pools
The Budget confirms that the government intends to proceed with two previously announced cryptoasset tax reforms.
Both measures are due to take effect from April 2027 and will form part of Finance Bill 2026-27.
Crypto lending and liquidity pools
The government intends to introduce no gain, no loss treatment for certain transactions involving qualifying cryptoasset lending and liquidity pool arrangements.
The measure covers defined arrangements involving cryptoasset lending, borrowing and automated market making.
Where the conditions apply, certain transfers will not create an immediate chargeable gain or allowable loss. Instead, the rules aim to recognise the gain or loss when an economic disposal occurs.
However, the treatment will not apply automatically to every DeFi transaction.
The nature of the arrangement, the assets involved and the statutory conditions will determine whether the new treatment applies.
The measure is intended to take effect from 6 April 2027. It does not generally remove tax consequences arising from historic DeFi transactions.
HMRC: cryptoasset loans and liquidity pools policy paper
Stablecoins
The government also intends to change the tax treatment of eligible stablecoins.
Under the proposed rules, gains arising when individuals dispose of eligible stablecoins will become exempt from Capital Gains Tax.
Certain qualifying returns from eligible stablecoins will also receive treatment as interest for Income Tax purposes.
The changes could simplify reporting for individuals who regularly use stablecoins to buy and sell other cryptoassets.
However, the exemption will only apply where the stablecoin meets the statutory definition. The government has not confirmed that every token marketed as a stablecoin will qualify.
The draft legislation also contains transitional rules for companies with existing eligible stablecoin holdings.
Both cryptoasset measures remain subject to the legislative process. The Budget confirms the government’s intention to proceed rather than introducing a general exemption for cryptocurrency transactions.
HMRC: Budget 2026 cryptoasset measures
Trading allowance increases to £3,000
The government has announced an increase in the trading allowance from £1,000 to £3,000 from 6 April 2027.
It will also increase the trading-income Self Assessment reporting threshold to £3,000.
The trading allowance can provide relief against qualifying trading and miscellaneous income.
For example, an individual who earns £2,500 from a qualifying small trading activity during 2027-28 may be able to use the increased allowance so that no taxable profit arises from that activity.
This assumes the individual meets the relevant conditions and elects to use the allowance where necessary.
The allowance is not an additional deduction on top of actual trading expenses. Taxpayers must consider whether using the allowance or deducting their allowable expenses produces the appropriate result.
The increase does not apply to property income or Capital Gains Tax.
The measure requires legislation and is intended to apply from 6 April 2027.
HMRC: Budget 2026, Trading Allowance Increase
Business mileage rates are increasing
The Budget confirms higher business mileage rates for employees and self-employed individuals who use their own cars or vans for qualifying business journeys.
The new rates have different commencement dates:
| Business mileage | Rate | Effective date |
|---|---|---|
| First 10,000 miles | 55p per mile | 6 April 2026 |
| Miles above 10,000 | 35p per mile | 6 April 2027 |
The increase to 55p for the first 10,000 miles was announced earlier in 2026. The Budget makes that rate permanent and confirms the further increase for mileage above 10,000.
Example: 6,000 business miles
At 55p per mile, 6,000 qualifying business miles produce a mileage amount of £3,300.
At the previous 45p rate, the equivalent amount would have been £2,700.
That is a difference of £600 in the mileage amount, not a £600 tax saving. The actual tax benefit depends on the taxpayer’s circumstances and how the mileage rules apply.
Self-employed individuals using simplified mileage expenses cannot also claim the actual running costs of the same vehicle.
HM Treasury: Budget 2026, mileage rates
Making Tax Digital: more time before quarterly penalties apply
Making Tax Digital for Income Tax continues to expand.
Individuals who must join from April 2027 will benefit from an additional year without late-submission penalty points for quarterly updates.
HMRC will not apply those penalty points for the 2027-28 tax year to taxpayers required to join MTD in April 2027.
However, this does not remove the quarterly reporting requirement.
Taxpayers must still send their quarterly updates before they can submit their annual tax return.
The government has also announced exemptions until further notice for certain groups, including individuals eligible for qualifying care relief and specified non-resident taxpayers.
These are targeted exemptions rather than a general delay to Making Tax Digital.
HMRC: Budget 2026, MTD penalty easement and exemptions
Self Assessment payments could become more regular from 2029
The government has published its response to the consultation on changing how taxpayers pay Income Tax through Self Assessment.
From April 2029, the government intends to move towards more regular automated payments during the tax year for taxpayers who make payments on account.
The government now intends to make automated in-year payments, such as Direct Debit, the default approach. Eligible taxpayers will have the option to pay through PAYE instead.
The government has not finalised the detailed payment arrangements.
The changes aim to bring tax payments closer to the period in which taxpayers earn the income.
For now, the existing Self Assessment payment deadlines remain in place. The announcement does not replace the normal 31 January and 31 July payment-on-account dates.
HMRC: Timely Payments in Income Tax Self Assessment consultation response
Capital Gains Tax: changes to business disposals and property returns
The Budget includes two targeted Capital Gains Tax measures.
Business Asset Disposal Relief
From 6 April 2027, the government intends to reduce the Business Asset Disposal Relief lifetime limit from £1 million to £500,000.
This relief can apply to qualifying business disposals, including certain disposals of business interests and shares.
The reduction will affect the maximum lifetime amount of qualifying gains that can benefit from the relief.
Special provisions will apply to certain contracts and share arrangements entered into before the new rules begin.
The change does not mean every business disposal qualifies for the relief. The existing eligibility requirements remain important.
Late UK property disposal returns
The government has also announced a change to late-filing penalties for UK property disposal returns.
From 28 October 2026, the proposed measure will stop relevant late-filing penalties continuing to accrue once the taxpayer reports the disposal on their Self Assessment return.
This does not remove the requirement to submit a UK property disposal return where one is required.
It also does not automatically cancel penalties that arose before the relevant reporting event.
HMRC: Budget 2026, Capital Gains Tax measures
Employee share schemes and taxable benefits
The Budget also announces changes that may affect employees who receive shares, share options or taxable employment benefits.
Employee share schemes
From 6 April 2027, the government intends to change the Company Share Option Plan and Enterprise Management Incentives rules.
The changes include increasing the CSOP individual option limit to £120,000, extending the CSOP exercise period to 15 years and amending certain EMI conditions.
These measures concern the rules governing qualifying employee share schemes. They do not create a general Income Tax exemption for all employee share awards.
Employees who receive RSUs or other share-based remuneration must still consider the relevant employment Income Tax rules.
Benefits in kind
The government also confirms a phased introduction of mandatory payrolling for most taxable benefits in kind.
From 6 April 2027, the rules will apply to company cars and vans, car and van fuel and medical benefits.
Most other benefits in kind will follow from 6 April 2028, subject to the announced exceptions.
The changes affect how employers report and collect tax on benefits rather than creating a new general category of taxable employment income.
HMRC: Budget 2026, employee share schemes and benefits in kind
Pensions and inheritance tax
The Budget confirms further measures affecting pensions and inheritance tax.
From 6 April 2027, most unused pension funds and pension death benefits will fall within the value of a person’s estate for inheritance tax purposes. Parliament had already legislated for this change through Finance Act 2026.
The Budget introduces further administrative provisions dealing with how personal representatives and pension scheme administrators handle the resulting liabilities.
Separately, the government will introduce a Pension Tax Allowance from April 2027, as previously announced at Budget 2025.
This measure aims to prevent pensioners whose total income does not exceed the full new State Pension from facing small Income Tax liabilities simply because of the interaction between the State Pension and the Personal Allowance.
The allowance reduces as income rises above the relevant threshold.
These are distinct measures with different purposes and eligibility rules.
HMRC: Budget 2026, pensions measures
HMRC is considering changes to property income reporting
The government has also opened a consultation on improving the information HMRC receives about rental income.
The consultation considers data supplied by letting agents and tenancy deposit scheme providers.
HMRC is examining whether changes to tax identifiers, reporting frequency and data quality could improve its understanding of property income.
These proposals do not create an immediate new reporting obligation.
The government must consider the consultation responses before deciding whether to introduce further requirements.
HMRC: Improving Property Income Data Reporting
What should taxpayers take from the Autumn Budget?
The Autumn Budget 2026 introduces several changes that will affect individuals over the coming years.
For landlords and savers, the most immediate future tax change is the increase in property and savings Income Tax rates from April 2027.
Sole traders will need to consider the higher trading allowance and revised business mileage rates. Individuals within Making Tax Digital will benefit from an additional period without quarterly late-submission penalty points, although their reporting obligations remain.
Cryptoasset investors will see the government proceed with the previously announced stablecoin and DeFi tax reforms. These measures could simplify the treatment of qualifying transactions, but the detailed conditions and transitional rules remain important.
Other changes affect business disposals, employee share schemes, benefits in kind, pensions and the future collection of Self Assessment payments.
The key distinction is when each measure takes effect. Some changes apply from 28 October 2026, others begin in April 2027, and several depend on future legislation or further consultation.
Anyone preparing a 2026-27 tax return should continue to apply the rules relevant to that tax year rather than assuming that every Budget announcement already applies.
If you are unsure how the Autumn Budget affects your personal tax affairs, speak to a tax adviser who can review the relevant changes and explain their application to your circumstances.
Sat Tax provides UK personal tax services covering Self Assessment, property income, Capital Gains Tax, cryptoassets and Making Tax Digital for Income Tax.
This article is for general information only and is not personal tax advice. Tax treatment and reporting requirements depend on your circumstances and the tax rules in place at the relevant time.
