29 October 2026
With yesterday’s Budget touching on everything from personal finances and pensions to measures affecting businesses, we’ve pulled together the key announcements and what they could mean for UK businesses.
Budget Highlights
Tax rates on savings income and property income will rise by a further two percentage points from 2027/28 for basic, higher and additional rate taxpayers, taking the rates to 24%, 44% and 49% respectively. Dividend tax rates will be unchanged.
A new pensions tax allowance will be introduced for three years to take pensioners with income equal to no more than the new state pension out of tax.
A new First Time Buyer ISA will be introduced from April 2029. Until then the lifetime ISA will continue, with a small reduction in the penalty charge for property buyers who breach the £450,000 purchase price limit.
The proposals to reduce cash ISA subscriptions for the under-65s will be abandoned.
A one-off £100 energy payment will be given to households in council tax bands A to D.
The trading allowance will be tripled to £3,000 from 2027/28.
The main first year allowance will be increased from 40% to 50% from 1 January 2027, but the main writing down allowance will be cut from 14% to 12% from April 2027.
The business assets disposal relief limit will be halved to £500,000 from April 2027, but at the same time a new Founders’ Relief will be introduced with a £10 million limit “for qualifying founders of high-growth, innovative companies.
We hope you find the report useful. If you’d like to discuss any of the changes, or what they could mean for you or your business, please do get in touch. We’re always happy to talk things through.
Warm regards,
The Verlingue Employee Benefits Team
employeebenefits@verlingue.com