Minimum wage / age 21+
£12.71 per hourCurrent from 1 April 2026. Other age bands have different rates.
Budget 2026 / the rules and the dates
The Budget, briefly.
What applies today. What changes next. And the difference it makes to your numbers.
Budget delivered 28 October 2026 · Checked 29 October 2026
Today means the 2026/27 tax year. The upcoming column shows announced future measures and their intended dates. Most future tax changes still need legislation. Previously scheduled measures and proposals under consultation are labelled separately.
01 / Current rules
In force now.
Use these rules for the current period. Do not use a future Budget figure before its start date.
Savings income
20% / 40% / 45%Above applicable allowances; UK-wide.
Property income
20% / 40% / 45%England, Wales and Northern Ireland; check devolved rules separately.
Dividend income
10.75% / 35.75% / 39.35%Above the £500 Dividend Allowance; no further rise announced in this Budget.
Business Asset Disposal Relief
18% / £1m lifetime gains limitFor qualifying disposals, subject to previous claims and the eligibility rules.
Trading Allowance
£1,000Relevant individual trading income before expenses, not limited-company turnover.
Business car / van mileage
55p / 25p per mileFirst 10,000 / subsequent qualifying business miles. The 55p rate already applies.
Making Tax Digital for Income Tax
First wave already startedQualifying income over £50,000 in 2024/25: entry from 6 April 2026.
These are selected rules, not a complete tax calculation. See current tax rates and allowances for the wider picture.
02 / Announced and scheduled
What changes next.
The current rule, the next rule, the date and the actual change — side by side.
| Measure / effective date | Currently in force | Upcoming rule | How it changes |
|---|---|---|---|
| Main-rate first-year allowance1 January 2027New Budget announcement | 40% | 50% | +10 percentage points of upfront relief for qualifying expenditure. |
| Minimum hourly wage1 April 2027Announced rates | 21+: £12.71 · 18–20: £10.85 · under 18 / eligible apprentice: £8.00 | 21+: £13.21 · 18–20: £11.27 · under 18 / eligible apprentice: £8.31 | +50p / +42p / +31p per hour. Check apprentice eligibility and paid working time. |
| Small Business Rates Relief1 April 2027New Budget announcement | 100% relief up to £12,000 rateable value; taper to £15,000. | For qualifying RHL properties in England: full relief up to £18,000; taper to £21,000. | Both thresholds rise by £6,000 for eligible retail, hospitality and leisure premises. Not blanket relief. |
| Main writing-down allowance1 April / 6 April 2027New Budget announcement | 14% | 12% | −2 percentage points. Corporation Tax starts 1 April; Income Tax starts 6 April. |
| Savings and property income tax6 April 2027New increase; legislation planned | 20% / 40% / 45% | 24% / 44% / 49% | +4 percentage points versus today; +2 points above the previously announced 22% / 42% / 47%. Savings: UK. Property: England, Wales and Northern Ireland. |
| Business Asset Disposal Relief6 April 2027New Budget announcement | 18% relief rate on up to £1m of qualifying lifetime gains. | 18% relief rate on up to £500,000 of qualifying lifetime gains. | The lifetime gains limit halves. The 18% relief rate is not the change. Previous claims and transaction rules matter. |
| Founders’ Relief6 April 2027 — proposedTechnical consultation / legislation | No equivalent dedicated Founders’ Relief. Other CGT reliefs may apply. | Proposed 10% CGT on up to £10m of qualifying lifetime gains. | A new, conditional relief for eligible founders and early investors in high-growth, innovative companies. Not a general 10% rate on business sales. |
| Trading Allowance6 April 2027New Budget announcement | £1,000 allowance and relevant reporting threshold. | £3,000 allowance and relevant reporting threshold. | +£2,000. Compare the allowance with actual allowable expenses; it is not a general profit exemption. |
| Business mileage above 10,000 miles6 April 2027New Budget announcement | 55p for the first 10,000 miles; 25p thereafter. | 55p for the first 10,000 miles; 35p thereafter. | +10p per qualifying mile above 10,000. The first-tier rate stays at 55p. |
| Making Tax Digital expansion6 April 2027 / 6 April 2028Previously scheduled rollout | Entry above £50,000 of qualifying income, using 2024/25. | Above £30,000 using 2025/26: April 2027. Above £20,000 using 2026/27: April 2028. | More sole traders and landlords join. These thresholds use qualifying gross income, not profit. This rollout was already scheduled. |
| Unused pensions and Inheritance TaxDeaths on or after 6 April 2027Previously legislated / future start date | Many discretionary pension death benefits sit outside the IHT estate, subject to the existing rules. | Most unused pension funds and pension death benefits enter the estate for IHT. | Review estate planning. Exclusions and exemptions, including spouse or civil-partner treatment, still matter. |
| Online marketplace VAT liabilityOctober 2027 — intendedNew Budget announcement | UK sellers normally account for their own VAT; marketplace rules already cover certain other sales. | Marketplaces collect VAT on relevant sales by UK VAT-registered businesses and other UK businesses meeting a £90,000 annual-sales threshold per platform. | Responsibility shifts for covered consumer sales. Personal sales, second-hand goods and B2B transactions are excluded. Wider seller obligations remain. |
| VAT e-invoicing1 April 2029Existing plan / new roadmap | Existing VAT invoicing rules; a PDF is not a structured e-invoice. | Structured VAT e-invoicing requirements, subject to final scope, exemptions and standards. | Review invoicing-software readiness. The 2029 mandate was previously announced; Budget 2026 adds the implementation roadmap. |
| Self Assessment payments on accountApril 2029 — plannedNew Budget announcement | Where required, two instalments: 31 January and 31 July. | Smaller, more frequent in-year payments for taxpayers already making payments on account. | Potential cash-flow timing change. The final frequency and detailed arrangements still need to be settled. |
Watch the comparison point. The planned 24% / 44% / 49% savings and property rates are four percentage points above today’s 20% / 40% / 45%, but two points above the rates previously announced for 2027/28. An earlier announcement is not the same as a rule already in force.
03 / Continuity matters too
What stays the same.
Dividend rates
No further Budget increase: 10.75%, 35.75% and 39.35%, subject to the allowance and tax band.
Cash ISA allowance
The latest Budget retains the £20,000 annual cash ISA limit. The older £12,000 proposal is not the latest announced position.
Investment reliefs
Qualifying 100% full expensing and the £1 million Annual Investment Allowance remain under their own eligibility rules.
The Budget does not increase the headline rates on earnings, National Insurance or VAT. This does not mean every tax bill or threshold is unchanged.
The full Roseworth briefing
What to consider before changing your plans
Our detailed guide explains the measures, conditions and practical questions to take into a payroll, investment, property or business-exit review.
Official sources.
- Budget 2026: full document
- HMRC: legislation and effective dates
- HMRC: current and future rates
- Minimum wage rates
- Current Small Business Rates Relief
- MTD entry thresholds
- Pensions and Inheritance Tax
- Founders’ Relief proposal
- Marketplace VAT proposal
- VAT e-invoicing roadmap
- Current payments on account
General information, not personalised tax advice. This is a selected business and personal-tax summary, not every Budget measure. Eligibility, devolved tax rules, allowances, transaction dates and subsequent legislation or guidance can affect your position.