Chancellor John Healey’s Autumn Budget has announced higher taxes on property and savings income, a larger Trading Allowance and changes to business disposal relief. Employers also face payroll preparations, while online sellers must assess new VAT arrangements. Many measures begin in 2027 rather than immediately and require legislation.

For small businesses, landlords and directors, the priority is preparation: understanding which announcements affect them, separating new measures from earlier commitments and updating financial forecasts before the relevant commencement dates.

Landlords face higher property-income tax rates

The government plans to introduce property-income tax rates of 24%, 44% and 49% from 6 April 2027. These represent a further two-percentage-point increase on the rates previously announced for that date.

The technical document specifies England, Wales and Northern Ireland, while noting devolved powers concerning property-income rates. Readers should therefore check their territorial position rather than assume identical treatment throughout the UK. Savings-income rates will also become 24%, 44% and 49% from 6 April 2027, applying across the UK.

For landlords holding property personally, the announcement makes reviewing projected rental profits and tax reserves important. It should not automatically trigger incorporation: ownership changes require a separate assessment of taxes, financing, legal costs and eligibility for relief.

Trading Allowance to rise to £3,000

The Trading Allowance will increase from £1,000 to £3,000 from 6 April 2027. The trading-income reporting threshold for Self Assessment will also rise to £3,000.

The allowance concerns relevant income before expenses, not simply profit. The government says individuals whose relevant income is fully covered can avoid declaring or paying tax on that income, subject to the relief’s rules.

This could simplify administration for people with small trading activities. However, it does not mean every sole trader earning less than £3,000 in profit can stop submitting tax returns: other income and filing obligations still require consideration.

Business disposal relief faces a lower lifetime limit

Business Asset Disposal Relief’s lifetime limit will fall from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027. Special provisions cover certain contracts, share reorganisations and securities exchanges involving transactions around that date.

The government also announced proposed Founders’ Relief, offering qualifying founders a 10% Capital Gains Tax rate on up to £10 million of lifetime gains. A technical consultation closes on 30 November 2026, with legislation intended to support qualifying disposals from 6 April 2027.

Founders’ Relief should not be presented as an automatic replacement for BADR. Its qualifying conditions remain central, and owners contemplating a sale should obtain transaction-specific advice.

Corporation Tax rates maintained, but investment relief changes

The government will maintain the main Corporation Tax rate at 25% and the small-profits rate at 19% for the financial year beginning 1 April 2028.

Separately, the main-rate first-year capital allowance will increase to 50% for qualifying expenditure incurred on or after 1 January 2027. The main writing-down allowance will reduce to 12%, effective from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax.

Businesses planning equipment purchases should assess which allowance applies rather than assume every investment receives the new first-year treatment.

Employers must prepare for payrolling benefits

Mandatory payrolling will apply to company cars and vans, associated fuel and medical benefits from 6 April 2027. Most other benefits in kind follow from 6 April 2028, excluding employment-related loans and employer-provided living accommodation.

Employers should review benefit records, payroll software and responsibilities between finance, HR and payroll teams.

The Treasury also states that the National Living Wage will rise to £13.21 an hour from 1 April 2027. This differs from the £13.20 figure in Bishop Fleming’s summary; this article uses the government’s published figure.

VAT changes affect online sellers and overseas services

From October 2027, online marketplaces will become responsible for collecting VAT on qualifying sales by UK businesses. The technical document covers UK VAT-registered businesses and other UK businesses meeting a minimum annual sales threshold of £90,000 per platform. Personal sales, second-hand goods and business-to-business transactions are excluded. Some implementation details require secondary legislation.

From April 2027, the overseas-services reverse charge will be restricted to VAT-registered UK recipients. Where the receiving UK business is not VAT registered, the overseas supplier will instead be required to charge and account for UK VAT under the announced change.

What businesses should review now

The immediate task is to map announcements against actual circumstances:

  • Landlords: update rental-profit and tax-reserve forecasts.
  • Directors: review planned disposals and proposed relief conditions.
  • Employers: prepare benefits data and payroll processes.
  • Traders: check allowance eligibility without overlooking other filing duties.
  • Online sellers: assess platform sales and VAT arrangements.

This is a Budget-day summary, not personalised tax advice. Commencement dates, qualifying conditions and legislative progress should be checked before acting. Reflex Accounting readers should seek an individual review rather than make restructuring decisions from headlines alone.