UK Autumn Budget 2026 – Key Tax Changes (Announced 28 October 2026)

1. Personal and Investment Tax Changes

          •       Savings and property income tax rates increased
From 6 April 2027, the tax rates on savings income and property income will each rise by 4 percentage points. The new rates will be:

          ◦       Basic rate: 24%

          ◦       Higher rate: 44%

          ◦       Additional rate: 49% (approaching the 50% rate last seen in 2012/13)

          •       Interest withholding tax
Aligns with the new basic rate on savings income and rises to 24% from April 2027.

          •       Business Asset Disposal Relief (BADR, formerly Entrepreneurs’ Relief)
The lifetime limit for the capital gains tax relief will be halved from £1 million to £500,000 from 6 April 2027. The preferential rate remains 18%.

          •       New Founders’ Relief
A new capital gains tax relief is introduced for founders who meet specific criteria relating to high growth, R&D investment and employee numbers.

          •       Income Tax Self Assessment (ITSA) automation
From April 2029, ITSA taxpayers will be required to make in-year payments on account via automated methods (e.g. Direct Debit).

2. Corporate and Financial Tax Changes

          •       Bank Corporation Tax Surcharge
Temporarily increased from 3% to 6% for the 15-month period from 1 January 2027 to 31 March 2028.

          •       Securities Transfer Tax
Stamp Duty and Stamp Duty Reserve Tax (SDRT) will be replaced by a new self-assessed Securities Transfer Tax. The standard rate remains 0.5%. Expected to take effect later in 2027.

          •       Foreign Permanent Establishment Exemption (FPEE)
Becomes mandatory from 1 January 2027 for UK-resident companies that offset losses of large overseas branches against UK profits.

          •       Anti-avoidance and promoter rules
HMRC introduced strict new rules targeting promoters of tax avoidance schemes from May 2026, with updated enforcement guidance published in October.