Summary of changes

Because this was not a ‘fiscal event’, the Chancellor did not mention the very significant tax changes that have been announced in the past to come into effect in the future. In order to help keep track of what is happening and when, this document summarises the main changes – and some significant decisions to keep things the same – that we already knew about, and explains their impact. The following is a quick reminder, and these points are covered in more detail in the pages that follow. Tax rate tables are included at the end of the document.

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Significant points: 2026/27

·        No change to allowances, main tax rates and bands – effectively a tax increase as incomes rise

·        Basic and higher rate income tax rates on dividends increase from 8.75% to 10.75% and from 33.75% to 35.75% respectively

·        Winter Fuel Payment clawed back if income exceeds £35,000

·        Adjustment to lower tax bands in Scotland

·        Company car tax continues to increase year on year in line with previous announcements

·        Changes to tax relief for employee homeworking and medical expenses

·        Increases in limits for Enterprise Management Incentive Scheme, Enterprise Investment Scheme and Venture Capital Trusts

·        Restrictions on voluntary payment of NICs by non-UK residents to qualify for UK State Pension

·        CGT incorporation relief has to be claimed rather than operating automatically

·        CGT rate on disposals qualifying for Business Asset Disposal Relief rises from 14% to 18%

·        100% Inheritance Tax reliefs for agricultural and business property restricted to £2.5 million of value 100%

·        Inheritance Tax relief for trading company shares quoted on ‘unlisted markets’ cut to 50%

·        Business rates revaluation exercise, changes to multipliers and transitional reliefs to mitigate steep increases

·        Reduction in capital allowance writing-down allowance rate

·        Joint and several liability for payroll taxes imposed on businesses using workers supplied by umbrella companies

·        Penalties for late filing of corporation tax returns increased

·        New VAT relief for small value gifts to charity

·        Making Tax Digital for Income Tax mandatory for self-employed and landlords with gross income from those sources over £50,000

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Significant points: 2027/28

·        Basic, higher and additional rate income tax

·        rates on savings (interest) and rental income increase from 20% to 22%, 40% to 42% and 45% to 47% respectively

·        No more than £12,000 of the £20,000 ISA limit to be invested in cash (over-65s will not be subject to this restriction)

·        Unused pension funds and pension death benefits brought within charge to Inheritance Tax

·        Image rights payments related to an employment will be treated as employment income

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Significant points: later

·        New Electric Vehicle Excise Duty based on mileage (April 2028)

·        High Value Council Tax Surcharge for owners of residential property in England valued over £2 million (April 2028)

·        Pension contributions by salary sacrifice liable to NICs if over £2,000 (April 2029)

·        Customs Duty low value import relief abolished (March 2029 at latest)

·        Requirement for VAT invoices to be sent electronically (April 2029)

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