29/10/2026
Autumn Budget 2026: Key Highlights for You & Your Finances
The Chancellor has delivered the Autumn Budget 2026, focusing on easing the cost of living, supporting small businesses, and introducing targeted property and tax updates. Here is a quick breakdown of what these changes mean for you:
Property, Mortgages & Housing
• New "Your First Home" Scheme: A £4.7 billion government-backed equity loan scheme launched to help first-time buyers get onto the property ladder.
• ISA Updates: The plan to reduce the cash ISA allowance has been scrapped, preserving the tax-free savings limit at £20,000. Additionally, Lifetime ISA rules are being revamped to support home buyers without harsh withdrawal penalties.
• Property & Savings Tax Rates: Income tax rates applied to property income and savings (excluding dividends) will see a 2 percentage point increase starting in April 2027.
Small Businesses & Self-Employed
• Business Rates Relief: The threshold for Small Business Rate Relief increases from £12,000 to £18,000 for qualifying retail, hospitality, and leisure businesses, effectively removing business rates for around 70,000 small firms.
• New Parental Pay for Self-Employed: Self-employed fathers and partners will now be eligible for paternity leave pay for the first time.
• Work Mileage Allowance: The higher mileage tax-free rate for individuals using their own cars for work increases from 25p to 30p per mile.
• Capital Gains Tax Change: The threshold for Business Asset Disposal Relief drops from £1,000,000 to £500,000.
Household Bills & Everyday Spending
• Energy Bill Relief: Gas standing charges are being phased out, and a one-off £100 Household Energy Payment will be issued to homes in council tax bands A–D.
• Fuel & Transport: The 5p fuel duty cut and freeze have been extended through to July 2027.
• Pay Boost: The National Living Wage and National Minimum Wage will rise by 3.9% starting April 2027.
