Published 28 October 2026. Based on the Chancellor’s Budget speech, so these figures are provisional until the Treasury publishes the full papers.
By Robert Green, chartered accountant.
Budget 2026 brings tax changes for creatives, landlords and small business owners. The Chancellor, John Healey, delivered his first Budget today, 28 October 2026. The headline: no new tax on employment income or dividends, and some welcome help for small firms. The catch is that landlords and savers pay more. Here is what matters for you.
Budget 2026 tax changes for landlords
Tax on property income rises by a further two percentage points from April 2027, on top of the increase announced in last year’s Budget. Press reports put the new rates at 24% for basic-rate taxpayers, 44% for higher-rate and 49% for additional-rate, although the full details are yet to be confirmed.
In plain terms, a higher-rate landlord with £20,000 of rental profit pays roughly £400 more a year for this rise alone. Relief for finance costs stays limited to the basic rate, so heavily mortgaged landlords feel it most.
Reports suggest there is no capital gains tax rise and no stamp duty change. If you hold property in your own name, now is a good time to ask whether that still makes sense. Moving into a company is not automatically cheaper, so run the numbers first.
What changes for creatives and the self-employed
The trading allowance triples from £1,000 to £3,000. The Chancellor framed it as help for people starting a new venture, so check the eligibility rules once published. It should suit the illustrator, photographer or musician testing a side income. If you have earned money and never registered, read our guide to getting straight with HMRC.
Self-assessment payments will be reformed from 2029, so more people pay smaller, regular amounts instead of one big bill. For freelancers with lumpy income, that could help cash flow, but we need the detail before celebrating. Our guide to Self-Assessment for models covers the basics. HMRC also gets extra funding and stronger powers to chase people who can pay but ignore repeated contact.
Self-employed fathers and partners become eligible for paid parental leave for the first time. Do not plan around it yet, as the start date is unconfirmed.
If you drive for work, the mileage rate above 10,000 miles rises from 25p to 35p. The cash ISA limit stays at £20,000, and a new starter ISA is promised for first-time investors. Savings interest, however, is taxed two points higher from April 2027.
Capital allowances and Business Asset Disposal Relief
Full expensing stays for eligible assets. For other new investment, the capital allowances first-year rate rises from 40% to 50%, while the main writing down allowance falls from 14% to 12%. That rewards buying kit upfront, so timing matters. See our page on allowable expenses for everyday claims. Start dates are not yet confirmed.
Business Asset Disposal Relief now covers lifetime gains up to £500,000, down from £1 million, reportedly from April 2027. The Chancellor says most claimants are unaffected, but anyone planning to sell a company should talk to us early.
The Chancellor also plans to change “outdated” rules so profits taken out of companies are taxed consistently, while protecting genuine commercial deals and family succession. There is no detail yet, so directors should watch this one.
For growing firms, EMI 2 doubles the generosity of the company share option plan, and a new founders’ relief taxes lifetime gains up to £10 million at 10%, though only for the most successful firms.
Business rates relief for shops, cafés and venues
The rateable value threshold for small business rate relief in retail, hospitality and leisure rises from £12,000 to £18,000. That takes 70,000 more businesses out of business rates altogether. Others in those sectors get a real-terms rates freeze for two years, and pubs, clubs and music venues keep their 20% cut from April 2027.
Energy and running costs
The VAT cut on household electricity is extended to July, and the 5p fuel duty cut stays until the same month. Households in council tax bands A to D get a £100 energy payment this winter. Gas standing charges are due to go from household bills from 2027, or as soon as possible after. The 25% electricity discount is aimed at 10,000 industrial firms, so most small creative businesses will not qualify.
Budget 2026 tax changes: a quick checklist
- Landlords: model your 2027/28 rental tax at the new rates and review how you own your properties.
- Freelancers: diarise the trading allowance and self-assessment changes, and keep clean records.
- Selling a business: speak to us well before April 2027 about the Business Asset Disposal Relief limit.
- Buying equipment: ask us how the new allowances affect timing.
- Shops and venues: check your rateable value against £18,000.
How Green & Peter support creatives, landlords and small businesses
Green & Peter are specialist accountants for creative businesses and property investors, so this Budget touches many of our clients. Our friendly team can show you what the changes mean in pounds before April 2027. Call us on 020 8446 8100 or complete our contact form for a callback.
FAQs
Will landlords pay more tax after Budget 2026?
Yes. Tax on property income rises by a further two percentage points from April 2027, with reported rates of 24%, 44% and 49%, although the detail is still to be confirmed.
How much is the new trading allowance?
It rises from £1,000 to £3,000, and the Chancellor described it as support for people starting a new venture. We will confirm the eligibility rules once the legislation is published.
Does Budget 2026 change business rates for small businesses?
Yes. The rateable value threshold for small business rate relief in retail, hospitality and leisure rises from £12,000 to £18,000, and other firms in those sectors get a two-year real-terms freeze.
Should I act before April 2027?
Possibly. The rise in tax on property income and the lower Business Asset Disposal Relief limit are reported to start then, so speak to your accountant before you make decisions.
