Autumn Budget 2026: At a glance

Subscribers, see: Capital Allowances: Autumn Budget 2026

 

Reduction in the main rate Writing Down Allowance (WDA)

It is proposed that from 1 April 2027 for Corporation Tax and 6 April 2027 for Income Tax: 

• The main rate WDA will be reduced from 14% to 12%.

Increase in the main rate First Year Allowance (FYA)

It is proposed that for expenditure incurred on or after 1 January 2027: 

• The main rate FYA will increase from 40% to 50%. 

Amending leasing anti-avoidance legislation (s.228G Capital Allowances Act 2001)

It is proposed that for qualifying expenditure incurred from 28 October 2026: 

• The statutory definition of a finance lease will be expanded when specifically applied to lease and leaseback arrangements.
  • This will restore the policy’s application to the relevant lessees, whether they have a finance lease or a relevant right-of-use lease. 
• For those arrangements, deductions for rental payments will generally be limited to the finance charge over the life of the leaseback.

Summary of responses to tax treatment of predevelopment costs consultation

• The government has published a summary of responses to the consultation on the tax treatment of predevelopment costs and will work with stakeholders to explore what improvements can be made to HMRC guidance to provide greater clarity on the application of the existing capital allowances rules.

Subscribers, see: Capital Gains Tax: Autumn Budget 2026

 

Founders’ Relief

It is proposed that from 6 April 2027: 

• A new Founders’ Relief will be introduced. This will provide a 10% rate of CGT on up to £10 million of lifetime gains for qualifying founders of, and significant early investors in, high-growth, innovative companies, for qualifying disposals of shares or securities.
• A technical consultation on the relief has been launched, seeking views on the practical application of the relief. This closes on 30 November 2026.

Business Asset Disposal Relief (BADR) lifetime limit reduction

It is proposed that from 6 April 2027: 

• The BADR lifetime limit will reduce from £1,000,000 to £500,000. 
• There will be special provisions that apply to contracts entered into before 6 April 2027 that have not been completed, and to certain share reorganisations and exchanges of securities not completed before 6 April 2027.

Relief for gifts of business assets

It is proposed that from 6 April 2027: 

• Legislation will modernise the formula that restricts gift Holdover Relief on the disposal of qualifying shares or securities, to include assets within the intangible fixed assets regime or that qualify for the substantial shareholding exemption.

Tax treatment of stablecoins

It is proposed that from 6 April 2027 for individuals and trustees, and 1 April 2027 for companies: 

• Eligible stablecoins will be treated more like money for tax purposes. Changes will amend tax rules for individuals, trustees and companies, and extend the application of withholding tax. 
•  
• For individuals and trustees, disposals of eligible stablecoins will be exempt from CGT, and interest-like returns from lending them will be taxed as savings income.
• For companies, certain transactions involving eligible stablecoins will be taxed based on amounts recognised in their accounts.

Cryptoasset loans and liquidity pools

It is proposed that from 6 April 2027: 

• In respect of cryptoasset loans and liquidity pools, certain transfers by individuals and trustees into and out of qualifying arrangements will be on a ‘no gain no loss’ basis until an economic disposal.

Capital sums in return for surrender of rights

From 28 October 2026: 

• Amendments to the capital gains legislation will provide that a capital sum received under a contract for loss of rights under that contract is in scope of CGT. 

Exit charges for temporarily migrating trusts

From 28 October 2026: 

• An administrative easement to the CGT ‘exit charge’ that otherwise applies when a trust ceases to be resident in the UK will apply.
• An exit charge will not apply when a trust becomes UK resident because one or more of its trustees moves to the UK; and it ceases to be UK resident later that year or the following year. 

Gains of offshore companies attributed to UK residents etc: protected cell companies

From 28 October 2026: 

• The capital gains participator rules for non-resident close companies will be amended to ensure that they apply to protected cell companies. 

Reforming the Cultural Gifts Scheme

It is proposed that from 6 April 2027: 

• The Cultural Gifts Scheme will be reformed to allow jointly owned property to be donated and the relief to be calculated by reference to a donor’s beneficial entitlement to that property.
• The measure will also allow donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.  

Subscribers, see: Companies: Autumn Budget 2026

 

Rate of Corporation Tax FY 2028

It is proposed that from 1 April 2028: 

• The Corporation Tax main rate will be maintained at 25% and the small profits rate at 19%. 

Modernising the distributions framework

• The government has published a summary of responses to the consultation on modernising the distributions framework which was published at Tax Update 2026.
• The government is proceeding with the proposals, with some changes to the policy design informed by stakeholder feedback.
• The reforms will ensure that distributions from companies to individual shareholders are taxed consistently, regardless of legal form, company residence or transaction structure, targeting arrangements that allow profits to be extracted at capital gains rather than Income Tax rates (e.g. via a new holding company and share buyback).
  • Capital treatment will be protected for genuine changes in ownership, including family business succession, and the purchase of own shares and demerger reliefs will be modernised.
• Further engagement will focus on the technical detail, and draft legislation will be published in 2027 for technical consultation. The changes will take effect from April 2028.

Modernising the administration of Corporation Tax

• The government has published a Call for Evidence on the future administration of Corporation Tax.
• It seeks views on how to better support companies to report and pay the right amount of tax first time, while exploring opportunities for more integrated information flows, proportionate administrative requirements and better use of data.
• It also explores how advances in automation and artificial intelligence could support a modernised Corporation Tax administration system and what lessons can be learned from companies already using these technologies.

Modernising and standardising Corporation Tax (CT) submissions

• The government has published a summary of responses to the consultation on modernising and standardising Corporation Tax submissions.
• The government will proceed with prescribing Corporation Tax computations on a longer and more flexible implementation timetable. The government will also introduce mandatory online filing of amended Company Tax Returns from 1 April 2028.
• Enforcement arrangements for prescribed computations will not be implemented at this time.

Company payments to participators: modernising the reporting framework

• The government has published a summary of responses to the consultation on company payments to participators launched in March 2026, which closed in June 2026.
• The government will not implement the new reporting requirements at this time.
• HMRC will continue to work with stakeholders on the concerns raised in the consultation to ensure taxpayers can access the best information to help them meet their tax obligations.

Corporate Interest Restriction: interaction with creative reliefs

It is proposed that from 1 January 2027: 

• Legislation will make technical amendments to Corporate Interest Restriction (CIR) such that the calculation of taxable earnings for CIR will exclude Audio-Visual Expenditure Credits and Video Games Expenditure Credits.

Research and Development (R&D) Tax Reliefs: improving taxpayer experience

It is proposed that for R&D claims made on or after 1 April 2027:

• The requirement to submit a Claim Notification Form will be removed.
• Legislation will also simplify and rationalise the information required in the Additional Information Form for companies that claim R&D tax relief from autumn 2027.

Corporate tax simplification for business investment

• The government has published a consultation, 'Corporate Tax Simplification for Business Investment', which identifies areas of the corporate tax system where targeted simplification could improve certainty and support investment, growth and competitiveness.
• The consultation sets out potential areas for reform and identifies opportunities to simplify aspects of the corporate tax regime while maintaining its effectiveness and integrity.
• The government will work with stakeholders over the next year to develop and prioritise reforms.

Corporation Tax: foreign permanent establishment (PE) exemption

It is proposed that for accounting periods beginning on or after 1 January 2027:

• The foreign PE exemption regime will be made mandatory (as announced on 21 May 2026).

Investment life insurance contracts

It is proposed that for accounting periods beginning on or after 1 January 2027:

• Legislation will make it explicit that the existing exemption from Corporation Tax for companies receiving payouts under investment life insurance contracts is only available when the contract is held otherwise than for the purposes of a trade the company carries on.

Exploration or exploitation rights

It is proposed that for accounting periods beginning on or after 13 July 2026 for Corporation Tax and for profits arising from 6 April 2027 for Income Tax: 

• Legislation will explicitly treat exploration and exploitation rights in relation to activities undertaken in the UK or on the UK Continental Shelf as immovable property. 

Reforming the Cultural Gifts Scheme

It is proposed that from 6 April 2027: 

• The Cultural Gifts Scheme will be reformed to allow jointly owned property to be donated and the relief to be calculated by reference to a donor’s beneficial entitlement to that property.
• The measure will also allow donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.  

Company Directors Disqualification Act 1986: disqualification following breach of HMRC securities legislation

It is proposed that for qualifying tax security offences committed on or after 1 April 2027: 

• Legislation will enable a court, following conviction for a qualifying offence under HMRC securities legislation, to consider disqualifying an individual from acting as a company director for up to five years. 

Changes to venture capital schemes

From 6 April 2026 and 6 April 2027: 

• Minor technical issues affecting the operation of the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) rules will be fixed.
• An amendment to the VCT relief withdrawal rules will take effect for relevant disposals of shares issued on or after 6 April 2026, and the rest of the changes will take effect from 6 April 2027.
• The government will also engage stakeholders on improving Advance Assurance and enhancing transparency of fees, alongside clearer HMRC guidance and greater compliance activity on fee arrangements that divert investment away from qualifying companies.

Subscribers, see: Compliance & Administration: Autumn Budget 2026

 

More timely payments for Self Assessment

It is proposed that from April 2029: 

• The government will require Income Tax Self Assessment taxpayers who make Payments on Account to make more regular in-year payments towards their final tax bill.
• Payments will be automated, with eligible taxpayers able to choose to pay through PAYE.
• The government previously consulted on the approach to more timely payment in Income Tax Self Assessment and has now published a summary of responses. 

Requiring Direct Debit arrangements for VAT and PAYE return liabilities

It is proposed that from April 2029: 

• The government will require taxpayers to set up a Direct Debit instruction for VAT and PAYE return liabilities, subject to defined exceptions.
• Businesses will continue to be able to use other payment methods to pay their liability before a specified cut-off date.
• The Direct Debit instruction will be used to collect any unpaid balances. 
• The government has published its response to the consultation alongside this announcement.

Late filing penalties for returns for disposals of UK land

From 28 October 2026: 

• Changes will be made to the late filing penalties regime that applies where a person fails to submit a UK property disposal return reporting a residential property disposal within the statutory deadline.
• This will stop those penalties continuing to accrue where that person later reports the disposal on their Self Assessment return.

Modernising the correction of errors

It is proposed that from 1 April 2028: 

• Taxpayers will be required under new legislation to correct inaccurate tax returns and documents.
• This will include a general obligation on taxpayers to correct inaccuracies when they are identified, and a new power enabling HMRC to issue a Customer Correction Notice where it has reason to suspect an inaccuracy.
• Customer Correction Notices will require taxpayers to check their tax affairs and either correct the inaccuracy or explain why no correction is needed. 

Direct recovery of lower value tax debts

It is proposed that from July 2029: 

• HMRC will be able to recover established lower value tax debts through regular deductions from bank accounts where taxpayers repeatedly fail to engage with HMRC. 
• The power will apply to established debts of up to £5,000 for individuals and £10,000 for companies, only after standard collection activity has been exhausted, and will be rolled out in phases starting with companies.
• HMRC will work with stakeholders on a Code of Practice setting out the safeguards.
• A summary of responses to the tackling lower value tax debts consultation has been published.

Reforming civil tax information and inspection powers (Schedule 36 Finance Act 2008) and modernising the definitions about computer records (s.114 Finance Act 2008)

It is proposed that from the date of Royal Assent to Finance Bill 2026-27: 

• Legislation will modernise HMRC’s civil information and inspection powers and provisions relating to computer records under Schedule 36 and Section 114 to the Finance Act 2008.
  • For Schedule 36, this includes reforms to the rules for issuing information notices relating to deceased taxpayers, expanding the scope of the Financial Institution Notice (FIN) to include cryptoasset service providers, removing the statutory FIN reporting requirement, streamlining the identification notice process and updating the relevant information that can be requested.
  • For Section 114, it ensures HMRC’s information powers operate effectively in a modern, digital tax system.

Deliberate defaulters: publishing enhanced detail

It is proposed that from the date of Royal Assent to Finance Bill 2026-27: 

• The amount of information the government will publish about deliberate tax defaulters will be increased. 
  • This measure will amend Finance Act 2009 to expand the amount of information HMRC can publish about the deliberate non-compliance that led to the publication of an individual or business’s details under that framework.
  • It will also add a new section which will allow HMRC to publish details of Personal Liability Notices, issued when a company’s liability to a penalty for deliberate non-compliance is transferred to its Company Officer.
• Separately, from the November 2026 publication, HMRC will only publish a deliberate defaulter’s details where the potential lost revenue exceeds £50,000 (previously £25,000). This change has already been made by statutory instrument.

Tackling promoters of tax avoidance

It is proposed that from the date of Royal Assent to Finance Bill 2026-27: 

• Amendments will be made to legislation aimed at tackling promoters of tax avoidance. This includes changes to the Promoters of Tax Avoidance Schemes regime and a typographical amendment to section 209(6)(a) of the Finance Act 2026.
• The changes will bring VAT and other indirect taxes fully within the POTAS regime and allow HMRC to publish the names of promoters subject to a stop notice earlier.

Clamping down on till fraud

• Mandatory software standards for Electronic Point of Sale and Mobile Point of Sale systems will be introduced to tackle Electronic Sales Suppression (ESS) or ‘till fraud’.
• The government has published its summary of responses to the consultation on ESS.
• HMRC will undertake further technical engagement with industry and publish a technical consultation in summer 2027, setting out detailed implementation proposals.
• The implementation date will be determined following further policy development and consultation.

Addressing persistent non-compliance by a small minority of larger businesses

• The government will review its approach to addressing persistent non-compliance and egregious behaviour by a small minority of larger businesses.
• This review will consider the effectiveness of the existing framework for managing larger business compliance, including the special measures regime and other tools available to HMRC, to ensure they remain fit for purpose.
• The government will engage with stakeholders next year as it considers any future changes.

Removing the financial incentives of tax avoidance

• The government will publish a consultation on a package of measures to tackle the promotion and use of tax avoidance, including:
  • New powers to tackle serious and serial users of tax avoidance schemes.
  • Changes to enable earlier recovery of promoters’ and certain individuals’ liabilities.
  • Changes to further strengthen HMRC’s existing Promoters of Tax Avoidance Schemes regime.

Offshore Penalty Reform consultation

• The government will publish a consultation later this year on reform to the offshore penalties framework. 

Improving stewardship through better quality software intermediation

• The government will introduce a package of measures to improve HMRC’s oversight of software intermediaries and strengthen requirements for software providers seeking to integrate with HMRC systems.
• The measures for software providers include: a registration process, strengthened standards including for software products, and proportionate enforcement for addressing breaches of HMRC’s software standards and terms of use.
• HMRC will engage with the software industry as the detailed arrangements are developed. 
• An intermediation roadmap will be published in spring 2027, setting out HMRC’s long-term approach to working with tax advisers, software providers and others, including strengthened standards for tax software providers and action against harmful intermediary activity and incorrect tax advice online.

Third-party property income data

• The government has published a consultation on modernising how property income data from third parties is collected and used by HMRC, including expanding third-party reporting requirements.

Automatic exchange of real estate information

It is proposed that from 2029-30:

• The UK will participate in a new international agreement to automatically exchange information on real estate.

HMRC’s approach to the compliance of wealthy taxpayers

• The government has published HMRC’s multi-year plan to modernise its approach to the compliance of wealthy taxpayers, making better use of data, technology and specialist expertise to identify and address non-compliance earlier.

Subscribers, see: Employment Taxes: Autumn Budget 2026

 

National Living Wage (NLW) and National Minimum Wage (NMW)

It is proposed that from 1 April 2027:

• The NLW for those aged 21 and over will increase from £12.71 to £13.21 per hour.
• The NMW for those aged 18-20 will increase from £10.85 to £11.27 per hour.
• The apprentice rate and NMW for those aged 16-17 will increase from £8.00 to £8.31 per hour.
• The accommodation offset will increase from £11.10 to £11.53 per day.

Approved Mileage Allowance Payment (AMAP) rates

It is proposed that from 6 April 2027:

• The Approved Mileage Allowance Payment (AMAP) rate of 25p per mile for travel over 10,000 miles will increase to 35p per mile. 
  • In May, it was announced that the 45p per mile rate for the first 10,000 miles would increase to 55p per mile from 6 April 2026. This has already been legislated. 
• The rates for motorcycles (24p per mile), bicycles (20p per mile) and passengers (5p per mile) remain unchanged.
• The change will also apply to the corresponding National Insurance contributions disregard for Relevant Motoring Expenditure (RME).

Company cars: appropriate percentages 2030-31

It is proposed that from 6 April 2030:

• Appropriate percentages for zero emission vehicles will increase by 1 percentage point (from 9% to 10%).
• Appropriate percentages for all other vehicle bands will increase by 1 percentage point to a maximum appropriate percentage of 40%. 

Van benefit charge and the car and van fuel benefit charges for 2027-28

It is proposed that from 6 April 2027:

• The car fuel benefit charge multiplier will be £30,200.
• The van fuel benefit charge will be £825.
• The van benefit charge will be £4,310.

Reforming how taxpayers claim for employment expenses

It is proposed that from April 2028: 

• The £2,500 Income Tax Self Assessment expenses threshold will be removed, allowing more taxpayers to claim tax relief on non-reimbursed employment expenses through PAYE.
• The government will keep under review whether there is a case for mandating the use of the PAYE route for taxpayers solely claiming employment expenses.

Changes to employee share schemes

From 28 October 2026:

• The Company Share Option Plan (CSOP) will be renamed Enterprise Management Incentives 2 (EMI2), reflecting its role for growing companies that have moved beyond, or are not eligible for, EMI.
• The scheme will retain the CSOP name in legislation.

It is proposed that from 6 April 2027: 

• Changes will be made to the Enterprise Management Incentives (EMI) and EMI2 schemes.
  • The EMI2 individual option limit will be increased from £60,000 to £120,000.
  • The interaction between the EMI2 and EMI individual option limits will be removed.
  • The EMI2 exercise period will be extended from 10 to 15 years.
  • The period for certain tax-advantaged and non-tax-advantaged shares and share options reserved by third parties to be excepted from the disguised remuneration rules will also be extended to 15 years.
  • The exception for Employee Ownership Trusts (EOTs) in the EMI rules will be extended to companies arranging to become controlled by an EOT.
  • The EMI exercise window following disqualifying events will be extended from 90 to 180 days.

Enterprise Management Incentives (EMI): Changes to the process to notify a grant of options

It is proposed that for options granted on or after 6 April 2027: 

• The requirement for a company to submit a separate notification of a grant of EMI options to HMRC will be removed. A company will be required to notify such a grant through the end-of-year return.

Reform of Benchmark Scale Rates (BSR) and Overseas Scale Rates (OSR) 

It is proposed that from 6 April 2028: 

• The government will reform and simplify BSRs and OSRs, which are used by employers to reimburse their employees for domestic and overseas travel and subsistence expenses, without the need to check receipts.
• BSR will be modernised to better reflect current subsistence costs.
  • The new rates will be £20 for periods of travel over 5 hours, £60 for over 10 hours and £75 for over 24 hours.
• The OSR will be simplified, replacing the 200+ destination-specific OSRs with a simplified tiered approach that links to the updated BSR.
• Ahead of publication, HMRC will continue to engage with interested stakeholders to finalise the appropriate OSR on a destination-by-destination basis and the associated guidance.

Tax treatment of image rights payments

It is proposed that from 6 April 2028 (delayed from 2027): 

• Legislation will clarify that image rights payments related to an employment will be treated as taxable employment income, subject to Income Tax and National Insurance Contributions (NICs).

Cancelled shifts: technical update

It is proposed that from 6 April 2027:

• Legislation will ensure that statutory payments made to agency workers for cancelled, moved or curtailed shifts are also covered by existing tax legislation, treating such payments as employment income.

Statutory Neonatal Care Pay (repeal of duplicate legislation)

• Legislation will remove legislation introduced by HMRC, which duplicated earlier legislation introduced by the then Department for Business and Trade, confirming that Statutory Neonatal Care Pay is a taxable benefit.
• This measure will remove HMRC’s legislation and treat it as never having had effect.

Certificate of sponsorship fee and immigration skills charge

For payments made on or after 28 October 2026: 

• Legislation will exempt from Income Tax and Class 1A National Insurance contributions an employer’s payment of a fee for a certificate of sponsorship or an immigration skills charge, which employers are required to pay when sponsoring a worker under the Skilled Worker route. 

National Insurance Contributions (NICs)

It is proposed that: 

• The Primary Threshold (PT) will remain at £12,570 until 2030-31.
• The Upper Earnings Limit (UEL) will stay at £50,270 until 2030-31.
• The Upper Secondary Threshold (UST) and Apprentices Upper Secondary Threshold (AUST) will remain at £967 per week until 2030-31.

It is proposed that from 6 April 2027:

• The Lower Earnings Limit (LEL) will be increased to £6,916 per annum (£133 per week) from £6,708 in 2026-27.

Requiring Direct Debit arrangements for PAYE return liabilities

It is proposed that from April 2029: 

• The government will require taxpayers to set up a Direct Debit instruction for PAYE return liabilities, subject to defined exceptions.
• Businesses will continue to be able to use other payment methods to pay their liability before a specified cut-off date.
• The Direct Debit instruction will be used to collect any unpaid balances. 
• The government has published its response to the consultation alongside this announcement.

Subscribers, see: Income Tax and National Insurance (for individuals): Autumn Budget 2026

 

Income Tax charge and rates for 2027-28

It is proposed that from 6 April 2027:

• There will be no increase to the headline rates of Income Tax or National Insurance contributions (the savings and property rate increases below aside).
• Finance Bill 2026-27 will set the Income Tax charge and the main and default rates for 2027-28, which apply to non-savings, non-property and non-dividend income. Scottish rates are set by the Scottish Parliament and Welsh rates by the Senedd.

Savings Income Tax rates for 2027-28

It is proposed that from 6 April 2027:

• The rates of Income Tax applicable to savings income will increase to: 
  • Savings basic rate: 24%
  • Savings higher rate: 44%
  • Savings additional rate: 49%
• These rates apply across the UK.
• This is a further increase of 2 percentage points, on top of the 2 percentage point increase announced at Budget 2025.

Property Income Tax rates for 2027-28

It is proposed that from 6 April 2027:

• The rates of Income Tax applicable to property income will increase to: 
  • Property basic rate: 24%
  • Property higher rate: 44%
  • Property additional rate: 49%
• These rates will apply across England, Wales and Northern Ireland. Scotland and Wales have the ability to set property income rates in line with their current Income Tax powers. 
• This is a further increase of 2 percentage points, on top of the 2 percentage point increase announced at Budget 2025.

Consequential amendments: savings and property rates

It is proposed that from 6 April 2027:

• Amendments will ensure that the rules on insurers’ reporting, tax treated as paid on gains from certain foreign life insurance policies, deduction at source and the Transfer of Assets Abroad legislation operate as intended following the new savings and property rates.

Pension Tax Allowance

It is proposed that from 6 April 2027:

• A Pension Tax Allowance will be implemented.
  • This will ensure pensioners whose total income is up to the value of the full new State Pension do not have the administrative burden of paying small amounts of Income Tax via Simple Assessment. 
• The allowance will be available in tax years 2027-28, 2028-29, and 2029-30.
• The value of the Pension Tax Allowance will be calculated by applying the basic rate of Income Tax (20%) to the difference between the full new State Pension and the Personal Allowance.
  • For individuals with total income above the value of the full new State Pension, the Pension Tax Allowance will be withdrawn at a rate of £1 for every £3 of income above this level.
• For 2027-28, the full allowance (worth up to £94) applies where total income is no more than £13,037, tapering to nil at £13,319. It is available to individuals at or above State Pension age and will be applied automatically by HMRC.

Trading Allowance increase

It is proposed that from 6 April 2027:

• The Trading Allowance will increase from £1,000 to £3,000.
• The trading income reporting threshold for Self Assessment will also be increased to £3,000.

Simplified expenses: motor vehicle costs

It is proposed that from 6 April 2027:

• The fixed rate deduction for car or goods vehicle expenses, available under the simplified expenses rules, will increase to 35p per mile (from 25p per mile) for qualifying travel over 10,000 miles.
  • In May, it was announced that the 45p per mile rate for the first 10,000 miles would increase to 55p per mile from 6 April 2026. This has already been legislated. 
• The rate for motorcycles (24p per mile) remains unchanged.

Married Couple’s Allowance

It is proposed that from 6 April 2027:

• The maximum amount of Married Couple’s Allowance will increase to £12,110.
  • The minimum amount will increase to £4,690.
  • The income limit will increase to £40,600.

Blind Person’s Allowance

It is proposed that from 6 April 2027:

• The Blind Person’s Allowance will increase to £3,370.

Qualifying Care Relief

It is proposed that from 6 April 2027:

• Qualifying Care Relief will be uprated to: 
  • Annual fixed amount: £21,160
  • Weekly amount, children under 11 years: £455
  • Weekly amount, children 11 years or older: £535
  • Weekly amount, adults: £535

National Insurance Contributions (NICs): rates, limits and thresholds

It is proposed that from 6 April 2027: 

• The Class 1 Lower Earnings Limit (LEL) will be £6,916 per annum (£133 per week).
• The Class 2 Small Profits Threshold (SPT) will be £7,355 per annum.
• The voluntary main Class 2 rate will be £3.80 per week.
• The voluntary Class 3 rate will be £19.05 per week.
• All other limits and thresholds will be maintained at 2026-27 levels until the 2030-31 tax year.

MTD for Income Tax: penalty easement

It is proposed that from 6 April 2027: 

• Late submission penalty points will not apply to quarterly updates for the 2027-28 tax year for Income Tax Self Assessment taxpayers required to join MTD in April 2027.
• Taxpayers will still need to send their quarterly updates before they are able to submit their tax return.

MTD for Income Tax: exemptions

It is proposed that from April 2027: 

• The government will exempt the following groups from MTD for Income Tax until further notice: those eligible for qualifying care relief, non-UK resident foreign entertainers and sportspeople and expected non-resident taxpayers. 

Social security benefits: clarification of Income Tax treatment

It is proposed that from 6 April 2027:

• Legislation will clarify the basis of taxation for some social security benefits, ensuring they are taxed on the accruals basis. The legislation will also remove or update references to obsolete and renamed benefits in Income Tax (Earnings and Pensions) Act 2003.

Changes to venture capital schemes

From 6 April 2026 and 6 April 2027: 

• Minor technical issues affecting the operation of the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) rules will be fixed.
• An amendment to the VCT relief withdrawal rules will take effect for relevant disposals of shares issued on or after 6 April 2026, and the rest of the changes will take effect from 6 April 2027.
• The government will also engage stakeholders on improving Advance Assurance and enhancing transparency of fees, alongside clearer HMRC guidance and greater compliance activity on fee arrangements that divert investment away from qualifying companies.

Deduction of Income Tax at source: informant rewards paid by HMRC

It is proposed that from Royal Assent to Finance Bill 2026-27: 

• HMRC will be required to deduct Income Tax at the additional rate from rewards paid to informants under the Strengthened Reward Scheme.

Department for Energy Security and Net Zero (DESNZ) Electricity Bill Discount Scheme

Retrospectively from 6 April 2026:

• Payments made under the DESNZ Electricity Bill Discount Scheme will be exempt from Income Tax.

Child Benefit overpayments and the High Income Child Benefit Charge (HICBC)

Retrospectively from HICBC’s introduction in January 2013: 

• Legislation will allow the offset of Child Benefit overpayments against HICBC payments made in relation to that overpayment. 

HMRC definition of terminal illness for pension access

It is proposed that from the date of Royal Assent to Finance Bill 2026-27: 

• Legislation will allow a serious ill-health lump sum to be paid where the pension scheme member can be reasonably expected to live for less than a year.
  • This will apply to uncrystallised rights regardless of whether the member has reached the age of 75 (so whether it is taxable or not).
• The measure will also amend the definition of a registered medical practitioner. 
  • This will allow a medical practitioner based outside the UK to provide evidence of a terminal diagnosis where the member lives in the country in which the practitioner practises.

Collecting tax due on excess lump sum death benefits

• Legislation will provide HMRC with a practical, standalone process for assessing and collecting tax due on lump sum death benefits.
  • Where a member who died before age 75’s available lump sum and death benefit allowance is exceeded, the excess will no longer be treated as pension income of individual beneficiaries.
  • Instead, a tax charge will be raised against those beneficiaries on their portion of the excess by reference to their marginal rate of Income Tax for the year the lump sum was paid.
• There are a number of differing effective dates for this measure. 
  • The main change has retrospective effect for relevant lump sum death benefits paid on or after 6 April 2024 (with transitional provisions for 2023-24), while the changes to the interaction with Inheritance Tax apply for deaths on or after 6 April 2027.

Tax treatment of pension and lump sum death benefits under the two-year rule

For payments made on or after 28 October 2026: 

• Legislation will remove the two-year rule for pension and lump sum death benefits.
  • This will mean that tax-free pension and lump sum death benefits will no longer become taxable solely because they are paid more than two years after the pension scheme administrator first knew, or could reasonably have been expected to know, of the member’s death.
  • The change will apply both where a payment would otherwise be taxable as pension income of the recipient and where it would otherwise be subject to the special lump sum death benefits charge.

Defined benefit pensions: surplus extraction tax regime

It is proposed that from 6 April 2027:

• Legislation will enable defined benefit occupational pension schemes to make direct payments of surplus assets to members, where permitted by scheme rules and subject to trustee discretion.
  • These authorised member surplus payments will be taxed as pension income where specified conditions are met, including requirements relating to the scheme’s funding position and the member having reached Normal Minimum Pension Age or, where applicable, their protected pension age. 

Withholding tax exemption for Scottish Government bonds

For interest paid on or after 28 October 2026:

• Legislation will provide an exemption from the duty to deduct sums representing Income Tax from interest paid on Scottish Government bonds, the issuance of which is subject to Treasury approval. 

Exploration or exploitation rights

It is proposed that for accounting periods beginning on or after 13 July 2026 for Corporation Tax and for profits arising from 6 April 2027 for Income Tax: 

• Legislation will explicitly treat exploration and exploitation rights in relation to activities undertaken in the UK or on the UK Continental Shelf as immovable property. 

Help to Save reform

It is proposed that from spring 2028: 

• The reformed Help to Save scheme will be introduced.
• The scheme will be delivered through a multi-provider model, enabling banks, building societies and credit unions to offer accounts directly to eligible customers.
  • Under this model, Help to Save accounts will be available from a wider range of savings providers, including some with an established high-street presence.
• The government continues to welcome engagement from potential providers interested in offering the scheme.

First Time Buyer ISA

It is proposed that from April 2029:

• The government will introduce a new First Time Buyer ISA to replace the Lifetime ISA for new savers.
  • It will provide a 25% government bonus up to a maximum of £20,000 on the final account balance, paid on withdrawal, towards a purchase of a first home worth up to £450,000. 
• Existing Lifetime ISA holders will be able to continue contributing to and using their accounts under the current rules.

Reduce Lifetime ISA withdrawal charge for properties over the property price cap

It is proposed that from 29 October 2026: 

• The Lifetime ISA withdrawal charge for purchases of properties above the Lifetime ISA property cap will be reduced from 25% to 20%.
• The charge for other unauthorised withdrawals will remain at 25%. 

Retaining the cash ISA limit at £20,000 and developing a new ISA incentive

It is proposed that from April 2027: 

• The cash ISA limit will remain at £20,000 for all savers over 18 years old. 
  • This reverses the previously planned reduction in the cash ISA limit.
• The government will work with industry to explore a new ISA incentive for people investing in a Stocks and Shares ISA for the first time. The detailed design will be developed with industry.

Guided Retirement and Retirement Collective Money Purchase (CMP)

• Legislation will support consolidation of Defined Contribution (DC) pensions and the introduction of Guided Retirement and Retirement-only Collective DC (RCDC) schemes.
• Legislation will amend the conditions in which an individual may keep their pension age or lump sum protection following a transfer of their pension rights between pension schemes.
• The legislation will also enable individuals who start receiving a pension under a RCDC scheme to convert that pension to a drawdown pension within a set period, if the RCDC scheme chooses to provide that option.
• Other legislative changes will be made to ensure the benefit payment rules can operate as intended for RCDC schemes and to allow transfers from drawdown funds to RCDC schemes.

Reforming the Cultural Gifts Scheme

It is proposed that from 6 April 2027: 

• The Cultural Gifts Scheme will be reformed to allow jointly owned property to be donated and the relief to be calculated by reference to a donor’s beneficial entitlement to that property.
• The measure will also allow donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.  

Subscribers, see: Inheritance Tax: Autumn Budget 2026

 

Preventing unintended deductions for liabilities in trust arrangements

For deaths and other chargeable events occurring on or after 28 October 2026: 

• Legislation will amend the IHT rules on liabilities and trust property to provide a statutory rule for taking liabilities properly incurred by trustees into account when valuing settled property for IHT purposes, align their treatment with personal liabilities and extend existing debt deduction restrictions and anti-avoidance rules to ensure that certain liabilities funded using value originating from a beneficiary’s own estate cannot reduce IHT charges.

Minor technical amendment(s) to the extension of IHT to pensions

It is proposed that from 6 April 2027: 

• Legislation will allow a prospective personal representative to direct pension scheme administrators to pay the IHT due to HMRC when certain conditions are met.
• Legislation will also allow those administering an estate to decide whether notional pension property is included in the ‘general’ component of the estate or as a separate component for the purposes of calculating the reduced rate of IHT when part of the estate is left to charity.

National Savings & Investments (NS&I) tracing error

• As announced on 19 May 2026, Finance Bill 2026-27 will provide a regulation-making power to deliver a full IHT exemption for holdings of estates affected by the NS&I tracing error on bereavement claims, and an Income Tax easement for personal representatives on interest accrued before death or during the administration period.
• The regulations may have retrospective effect, provided they do not increase anyone’s tax liability.

Subscribers, see: Land & Property: Autumn Budget 2026

 

Annual Tax on Enveloped Dwellings (ATED): annual chargeable amounts

It is proposed that from 1 April 2027 ATED annual charges will rise by 3.5%, in line with September 2026 CPI, to:

Taxable value of property	Charge for tax year 2027-28
£500,001 to £1 million	£4,750
£1,000,001 to £2 million	£9,750
£2,000,001 to £5 million	£33,300
£5,000,001 to £10 million	£78,050
£10,000,001 to £20 million	£156,750
Over £20 million	£314,050

Removing Stamp Duty Land Tax (SDLT) on rent under assured tenancies

From 1 May 2026: 

• SDLT liability will be removed from the rent element of assured tenancies, as will the requirement to file SDLT returns solely because rent is payable under an assured tenancy.

Stamp Duty Land Tax (SDLT) Group Relief

From 29 October 2026:

• The SDLT Group Relief rules will be amended so that a winding up of a vendor does not prevent the relief from being clawed back within the usual three-year period if the purchasing company later leaves the group. 

Local Government Pension Scheme: relief for Stamp Duty Land Tax (SDLT)

For transactions with an effective date on or after 28 October 2026 and before 1 April 2032: 

• The SDLT rules will be amended so that acquisitions of land and property made by Local Government Pension Scheme (LGPS) asset pool companies from LGPS member funds are subject to SDLT relief.

High Value Council Tax Surcharge

It is proposed that from April 2028:

• A High Value Council Tax Surcharge will be introduced as an additional charge on residential properties in England worth £2 million or more (based on April 2026 values), payable by owners in addition to their existing Council Tax. 
• The annual charge will be £2,500 (£2m to £2.5m), £3,500 (£2.5m to £3.5m), £5,000 (£3.5m to £5m) and £7,500 (over £5m), increasing with CPI from 2029-30.
• Following consultation, there will be a deferral scheme, a series of discounts and exemptions, and a 100% premium on properties left empty and unoccupied for 12 months or more.

Subscribers, see: Large Corporates: Autumn Budget 2026

 

Advance Tax Certainty Service: threshold reduction

• Following the launch of the Advance Tax Certainty Service in July 2026, legislation will lower the entry threshold for qualifying projects from £1 billion to £300 million.

In addition, the government will:

• Amend the procedure for further changes to the definition of ‘qualifying investment projects’ from the draft affirmative Statutory Instrument to the negative procedure.
• Amend the penalty provision at section 270, Finance Act 2026 so that in respect of a failure to provide information a penalty will only be charged where it relates to a clearance that has been issued. The other penalty provisions have not been changed.

The changes relating to the threshold level and penalty rules will take effect on 4 November 2026. Changes relating to the power will take effect from 1 April 2027. The service will be kept under review with a view to developing it further in the future.

Increase in rate of Banking Surcharge

It is proposed that from 1 January 2027 to 31 March 2028:

• The rate of the Corporation Tax surcharge on banking companies will increase to 6% temporarily (for 15 months). 

Pillar 2: Side-by-Side package and further amendments

• As announced on 13 July 2026, legislation will amend Multinational Top-up Tax and Domestic Top-up Tax to implement the OECD’s Side-by-Side package, with effect for accounting periods beginning on or after 1 January 2026.
• Most of the further technical amendments will apply for accounting periods beginning on or after 31 December 2026 (with an election for earlier effect), and certain others for periods beginning on or after 31 December 2023 or 31 December 2024.

Reform of Advance Corporation Tax (ACT) regime

It is proposed that from 1 April 2031: 

• The remaining Advance Corporation Tax (ACT) regime will be repealed.
• All remaining unrelieved surplus ACT balances will be extinguished when the regime ends.
• The government has published its response to the Advance Corporation Tax Reform call for evidence.

Corporation Tax revenue recognition deferral for gas network operators

It is proposed that for accounting periods ending on or after 31 December 2026: 

• Legislation will be introduced to spread certain Corporation Tax impacts of changes to revenue recognition requirements for qualifying gas distribution activities evenly over five years, to help smooth out any resulting financial impacts.
• The measure will apply to qualifying revenues which would be passed on to consumers, where these were previously deferred and now recognised as a result of changes to accounting standards and brought into account for Corporation Tax.
• The transitional amount, which would otherwise be taxable in 2026-27, will be spread over five years from 2026-27. The precise tax outcomes and qualifying transitional amount will be set out in due course. This will not reduce the overall Corporation Tax due.

Oil and Gas Revenue Levy (OGRL)

• Legislation will establish the Oil and Gas Revenue Levy (OGRL), a new, permanent additional 35% levy on exceptional oil and gas revenues arising during periods of unusually high prices.
• The OGRL will apply to exceptional oil or gas revenues arising on or after the day immediately following the cessation of the Energy Profits Levy (EPL), which will be 1 April 2030 or an earlier date if the Energy Security Investment Mechanism (ESIM) is triggered.

Subscribers, see: Overseas & Residence: Autumn Budget 2026

 

Investors in US Limited Liability Companies and other reverse hybrids

It is proposed that from early 2028:

• A mechanism will be created to provide double taxation relief for income received by UK investors from certain foreign entities, such as US LLCs, where relief is currently unavailable.
• The government has published a response to the previous consultation, with further consultation ahead of legislation in Finance Bill 2027-28.

Residence-based regime

• The government will continue to assess, supported by emerging evidence next year, whether the residence-based regime strikes the right balance between international competitiveness, fairness and support for the public finances.

Sovereign tax status regime

A consultation has been published, and future legislation will be drafted for foreign sovereigns investing in the UK.

It is proposed that from 1 January 2029: 

• This will legislate a new sovereign tax status available for states, heads of state and emanations of states, while bringing certain income and gains into direct tax (Corporation Tax, Income Tax and Capital Gains Tax).
• Investment management activities undertaken by sovereign investment offices and gains arising to State-operated Overseas Pension Funds will be exempted from tax.
• Sovereigns will keep qualifying institutional investor status for the Real Estate Investment Trust (REIT), Qualifying Asset Holding Company, Long-Term Asset Fund and most collective investment vehicle regimes.
• Sovereigns will get bespoke access to a REIT structure which will enable them to hold a controlling interest in a REIT through a UK company while benefiting from a 15% tax rate on property income distributions.
• Transitional provisions will include rebasing for certain assets and a time-limited Stamp Duty Land Tax relief for restructuring of certain existing property holdings, which will apply ahead of the reforms taking effect.

Modernisation of the Stamp Taxes on Shares Framework

It is proposed that from late 2027:

• The Securities Transfer Tax will be introduced to replace Stamp Duty and Stamp Duty Reserve Tax.
• The government will also keep under review the potential benefits of cutting Stamp Taxes on Shares to support UK capital markets, having regard to the fiscal implications.

 

For Stamp Duty Land Tax (SDLT), see Land & Property.

Subscribers, see: VAT: Autumn Budget 2026

 

VAT and Climate Change Levy on electric vehicle charging deemed not to be for domestic use

It is proposed that from 1 November 2026: 

• Legislation will clarify that electricity supplied through publicly accessible and workplace electric vehicle charging points is standard-rated (20%) for VAT.
• It will also specify that publicly accessible and workplace electric vehicle charging points are not considered a domestic use for the purpose of the Climate Change Levy.

Extending the temporary 0% rate for domestic electricity

It is proposed that from 1 April 2027: 

• The temporary VAT zero rate for domestic electricity supplies will be extended until 30 June 2027.
  • A 0% rate of VAT will continue to apply to qualifying electricity supplies that would otherwise be subject to the reduced rate of 5% from 1 April 2027.

Energy-Saving Materials (ESM) relief

It is proposed that from 1 April 2027: 

• Heat batteries will be included within the VAT relief for energy-saving materials when installed in residential accommodation or charity buildings in the UK. 
• As announced when the temporary zero rate was introduced in 2022, the rate of VAT relief for energy-saving materials will revert to 5% from 1 April 2027.

Online Marketplace Liability (OMPL) extension

It is proposed that from October 2027:

• The VAT online marketplace liability rules will be extended to UK businesses.
• Online marketplaces will be responsible for collecting VAT on sales by UK VAT-registered businesses and any other UK business with a minimum annual sales threshold per platform of £90,000.
  • The rules will not apply to non-business (i.e. personal) sales, second-hand goods, or business-to-business transactions.
• Some aspects of this measure will be implemented via secondary legislation in 2027, including setting the annual sales threshold per platform and the implementation date.
• The government published a consultation on extending VAT online marketplace liability to combat non-compliance in June 2026. A summary of consultation responses has been published.

Deposit Return Scheme

It is proposed that from October 2027: 

• Legislation will simplify the administration of the Deposit Return Scheme, which will introduce refundable deposits on single-use drink containers.
• The requirement for individual producers to account for VAT on unreturned deposits will be removed; instead, this will be done by the Deposit Management Organisation (DMO).  

Deeming of Private Hire Vehicle Operators (PHVOs)

It is proposed that from 2 January 2028:

• The VAT treatment of supplies of passenger transport services by taxi or private hire vehicle when supplied through an agent will change, so that the services will be deemed to be made by the agent and not the driver.
  • This means that the private hire vehicle operator will have to charge VAT on the full value of the fare.
• The deeming will only apply to businesses whose annual fare turnover exceeds a specified threshold.
• The government will consult, in due course, on the level of this threshold, with £50 million annual fare turnover the lead option.
  • The consultation will also support final policy design and implementation.

Review of the VAT treatment of travel services including the Tour Operators’ Margin Scheme

• A call for evidence has been published for the review on the VAT treatment of travel services, including the Tour Operators’ Margin Scheme (TOMS).
• It seeks views on whether TOMS remains fit for purpose and should be retained, reformed, simplified, made optional, partly withdrawn or removed.
• The government is also reviewing the treatment of travel services outside of the TOMS that are enjoyed in the UK but supplied by tour operators based outside the UK.
• The evidence will inform proposals to simplify VAT administration, support fair taxation and reduce distortions in the VAT system.
• The call for evidence runs from 28 October 2026 to 31 January 2027.

E-Invoicing requirements

It is proposed that from April 2029: 

• Legislation to enable HMRC to make regulations requiring VAT invoices to be issued and received in a prescribed electronic format will be introduced.
  • The government has published an implementation roadmap, which sets out the further details about e-invoicing and a timeline setting out when it will share further information and publish guidance. 
• Building on the government’s commitment to explore digital reporting alongside mandatory e-invoicing, a consultation was launched at Budget 2026 and will run until 20 January 2027.
  • This will gather evidence from businesses, software providers and other stakeholders to inform future policy development and technical exploration.

Reform of the reverse charge for B2B supplies of services from overseas

It is proposed that from April 2027: 

• The VAT reverse charge for supplies of services from overseas will be restricted, so that it only applies if the receiving UK business is VAT registered.
• This change means that where a UK business is not VAT registered, the overseas supplier will be required to charge and account for UK VAT.
• This follows a call for evidence on VAT and the sharing economy, which HMRC published in December 2020. HMRC published the summary of responses in July 2021. 

Zero rate for land sold to a relevant Housing Association

It is proposed that from 1 April 2027: 

• A new zero rate of VAT will apply on the sale of land to registered social housing providers (relevant Housing Associations). 
• A summary of responses to the previous consultation has been published.

VAT126 powers & safeguards

It is proposed that from the date of Royal Assent to Finance Bill 2026-27: 

• Legislation will enable the future introduction of powers and safeguards for VAT126 claims.
  • These are non-business VAT refund claims made by non-VAT registered bodies, including local authorities and similar bodies, specified museums and galleries, academies, certain types of charities, and other bodies specified by Treasury Order. 

VAT in the Digital Age: Pillar 3

It is proposed that from 1 January 2027: 

• Schedule 9ZA to the VAT Act 1994 will be amended in respect of distance sales of goods to consumers in Northern Ireland from the EU. 

Repeal of Item 5 of Group 7 of Schedule 9 to the VAT Act 1994

It is proposed that from 1 May 2027: 

• A supply of a deputy for a medical practitioner will be subject to the standard rate of VAT.
  • Group 7 of Schedule 9 to the Value Added Tax Act 1994 will be amended to restore the VAT treatment of a deputy for a medical practitioner to its previously intended position.
• The government will remove the VAT exemption under Item 5 for a supply of a deputy for a person registered in the register of medical practitioners.
  • Deputising services will remain in scope of the medical exemption where they are primarily providing medical care.

Zero rate on donated medicines

Retrospectively from 23 June 2026:

• A VAT zero rate will be introduced for medicines provided free of charge for a qualifying purpose.
• The measure will apply to medicines supplied for NHS treatment, including through the Early Access to Medicines Scheme and other early access arrangements, and in connection with clinical trials or receiving continued treatment following a clinical trial.

Amendments following the abolition of NHS England

• Legislation will make consequential amendments to Schedule 8 to the Value Added Tax Act 1994 following the abolition of NHS England and the transfer of its relevant functions to the Department of Health and Social Care.
• The amendments will maintain the existing VAT treatment where appropriate and remove references to NHS England that will no longer be required.
• The changes will take effect from a future date specified by HM Treasury in regulations.

Requiring Direct Debit arrangements for VAT return liabilities

It is proposed that from April 2029: 

• The government will require taxpayers to set up a Direct Debit instruction for VAT return liabilities, subject to defined exceptions.
• Businesses will continue to be able to use other payment methods to pay their liability before a specified cut-off date.
• The Direct Debit instruction will be used to collect any unpaid balances. 
• The government has published its response to the consultation alongside this announcement.

Business rates (England)

The following measures were announced:

• From 1 April 2027, relief for pubs, social clubs and live music venues will increase from 15% to 35% (excluding live music venues with a rateable value of £1 million or more).
• From 1 April 2027, the Small Business Rate Relief thresholds for retail, hospitality and leisure (RHL) properties will increase to a rateable value of £18,000 for 100% relief (from £12,000) and £21,000 for tapered relief (from £15,000).
• Business rates bill increases for qualifying RHL properties will be capped at CPI in 2027-28 and 2028-29.
• From April 2027, Adult Gaming Centres and vape shops will no longer be eligible for the RHL multipliers, and vape shops will also lose Small Business Rate Relief.
• The 2026 Supporting Small Business scheme will be extended for one year from 1 April 2027 to those who received 2023 Supporting Small Business relief, and the 1p Transitional Relief Supplement will be extended for two years.
• A general anti-avoidance rule for business rates will be introduced as soon as possible, following consultation.
• The 2027-28 multipliers will be: standard 49.7p, small business 44.7p, standard RHL 44.7p, small business RHL 39.7p and high-value 52.5p.

Customs treatment of low-value imports

• Legislation will reform the customs treatment of low-value imports, removing the £135 customs duty relief, with the reforms implemented by October 2028, six months earlier than previously announced.

Machine Games Duty (MGD)

It is proposed that from 1 April 2027: 

• The rate of MGD on higher-stakes machines will increase from 20% to 25%. 
• Legislation will amend the stake and prize thresholds used to determine the MGD rate chargeable on gaming machines.
• Under the revised thresholds, gaming machines with a maximum charge to play of more than £1 or a maximum prize of more than £100 will become subject to the higher rate of MGD at 25%, instead of the standard rate of 20%.

Machine Games Duty: changing who is liable for the duty

It is proposed that from 1 April 2028:

• Legislation in a future Finance Bill will make machine suppliers liable for Machine Games Duty on supplier-owned machines operated under profit-share arrangements.
• Premises licence holders, permit holders and pub tenants will remain liable where they own the machine outright or use it under a fixed rental or lease arrangement and control the takings.
• The government is consulting on the implementation of this change until 20 January 2027.

Remote Gaming Duty (RGD)

It is proposed that from 1 April 2027: 

• Legislation will put beyond doubt the tax treatment of freeplays, prizes and tournaments for RGD.
• This measure will amend the RGD legislation applying to freeplays (which will now be referred to as restricted plays), prizes and tournaments. It will set out how restricted plays won from the use of another restricted play are excluded for the purposes of RGD calculations.
• The measure will also amend the legislation determining when participation in a tournament is treated as playing a game of chance. In addition, it will revise the definition of a prize, including the treatment of prizes awarded under the rules of a game and certain payments made following the interruption or termination of a game.

Gaming Duty: gross gaming yield bands

It is proposed that from 1 April 2027:

• The gross gaming yield bandings used to determine the rate of Gaming Duty will be frozen until 31 March 2028.

International Student Levy (ISL)

It is proposed that from 1 August 2028:

• Legislation will establish the International Student Levy (ISL), a levy on higher education providers charged at a rate of £925 per student per year of study.
• All providers will be given an allowance for the first 220 international students per year, for whom they will not pay the charge.
• The ISL will apply in respect of international students registered with a higher education provider on or after 1 August 2028, being the start of the 2028-29 academic year.

Vaping Products Duty: compliance powers

It is proposed that:

• Following the commencement of Vaping Products Duty (VPD) on 1 October 2026, legislation will correct VPD legislation and strengthen HMRC’s ability to enforce VPD.
• From 4 November 2026, HMRC will have a power to ‘deem’ that suspected vaping products were imported or manufactured after VPD’s introduction on 1 October 2026, unless there is evidence to the contrary.
  • This places the onus on businesses to prove that their vaping products are not in scope of the duty.
• From 1 January 2027, HMRC officers will be able to seize any article involved in the illicit manufacture of vaping products, for offences that occur on or after 4 November 2026.

Nicotine Approval Scheme

• A consultation on the design of a Nicotine Approval Scheme, to control the supply of high-strength nicotine from 1 April 2028, has been published and runs until 20 January 2027.

Soft Drinks Industry Levy (SDIL) uprating

It is proposed that from 1 April 2027:

• The rates of the SDIL will increase.
• The increase is the total of:
  • An increase in line with the Office for Budget Responsibility’s forecast of CPI inflation.
  • 10 and 13 pence per 10 litres for the lower and higher rates respectively (one fifth of the 27% increase which reflects CPI between 2018 and 2024).
• For chargeable soft drinks containing:
  • At least 5 grams of total sugar per 100 millilitres but less than 8 grams of total sugar per 100 millilitres, the rate will be £2.25 per 10 litres.
  • 8 grams or more of total sugar per 100 millilitres, the rate will be £3.01 per 10 litres.

Changes to the Soft Drinks Industry Levy (SDIL)

It is proposed that:

• From 1 January 2028:
  • The threshold at which soft drinks with added sugar are liable to the levy will be lowered from 5g to 4.5g total sugars per 100ml.
  • The existing exemptions for milk-based drinks and milk substitute drinks with added sugar will be removed.
  • A ‘lactose allowance’ will be introduced to account for naturally occurring sugars in milk.
• From 1 April 2027:
  • The requirement for soft drinks producers who produce more than 1 million litres of liable soft drinks per year to register for the levy will be removed.
  • This change will only affect producers that do not package or import soft drinks, as they will have no liability to pay the levy.

Alcohol Duty uprating

It is proposed that from 1 February 2027:

• Alcohol Duty rates on alcoholic products will increase in line with RP) inflation.
• The relative value of Small Producer Relief will increase by:
  • Making the discount taper for alcoholic products below 3.5% ABV more generous.
  • Uprating the marginal discount for products between 3.5% and 8.4% ABV by RPI plus 10%.
• The simplified rates in the Travellers’ Allowances Order 1994 will be amended in line with the alcohol duty rate increases.

Penalty reform for Alcohol Duty

It is proposed that from spring 2027:

• Legislation will introduce HMRC’s reformed late submission and late payment penalties, known as 'penalty reform', for Alcohol Duty returns.
• This brings Alcohol Duty into HMRC’s reformed penalty regime, aligning it with the approach already in place for VAT and Income Tax Self Assessment.
• The measure is expected to take effect by appointed day order.

Air Passenger Duty: rates for 2028-29

It is proposed that from 1 April 2028:

• Air Passenger Duty (APD) rates for 2028-29 will increase in line with the RPI, rounded to the nearest penny.

Air Passenger Duty: extension of the higher rate

It is proposed that from 1 April 2027:

• The scope of the higher rate of Air Passenger Duty (APD) will be extended to all private jets of 5.7 tonnes or more.

Carbon Border Adjustment Mechanism (CBAM): scope amendment

It is proposed that from 1 January 2027:

• Legislation will correct a minor error in Finance Act 2026.
• Commodity code 7202 29 (other ferro-silicon) will be added to the existing ferro-silicon exceptions from scope.

Carbon Border Adjustment Mechanism (CBAM): sectoral scope expansion to refinery products

• The government intends to expand the scope of the Carbon Border Adjustment Mechanism (CBAM) to include refinery products, subject to consultation on feasibility and impacts.
• The consultation opened on 28 October 2026 and will close on 20 January 2027.
• The government will consider responses before bringing forward any legislation required to implement the change.

Carbon Border Adjustment Mechanism (CBAM): country-specific default values

It is proposed that from 2029:

• Country-specific default values will be introduced for the UK CBAM, replacing the global default values used in 2027 and 2028.

Climate Change Levy (CCL) rates for 2028-29

It is proposed that from 1 April 2028:

• The main rate of CCL for electricity will be frozen at its 2027-28 level.
• The main rate of CCL on liquefied petroleum gas will also remain frozen.
• The main rate of CCL on gas and solid fuels will be uprated in line with the RPI.
• The reduced rates of CCL under the Climate Change Agreement scheme will remain at the same fixed percentages of the main rates.

Aggregates Levy rate for 2027-28

It is proposed that from 1 April 2027:

• The rate of Aggregates Levy will increase in line with the RPI.

Landfill Tax increase in rates from 1 April 2027

It is proposed that from 1 April 2027:

• Landfill Tax rates will increase for 2027-28.
• The standard rate of Landfill Tax will increase in line with the RPI, rounded to the nearest 5 pence.
• The lower rate of Landfill Tax will increase by the cash amount of the increase to the standard rate.

Landfill Tax: removal of the exemption for stabilisers added to dredged material sent to landfill

It is proposed that from 1 April 2027:

• The Landfill Tax exemption for materials added to dredged material as stabilisers before disposal will be removed.
• As a result, only the dredged material itself will be exempt from Landfill Tax.

Landfill Communities Fund Value for 2027-28

It is proposed that from 1 April 2027:

• The cap on the amount of tax credit claimable by landfill operators in respect of contributions made to the Landfill Communities Fund against their Landfill Tax liability will increase from 5.3% to 8.3% of their Landfill Tax liability.
• This provides an estimated fund value of £25.3m for 2027-28.

Plastic Packaging Tax rate for 2027-28

It is proposed that from 1 April 2027:

• The rate of Plastic Packaging Tax (PPT) will increase in line with the CPI.

Plastic Packaging Tax: Mechanically recycled plastic certification consultation and summary of responses

It is proposed that from 1 April 2030:

• Mandatory certification will be introduced for businesses claiming an exemption from Plastic Packaging Tax (PPT) on the basis it meets the 30% recycled plastic threshold.
• This follows the published summary of responses to the May 2026 consultation on potential certification for mechanically recycled plastic packaging for the purposes of PPT.

Fuel duty rates

It is proposed that:

• From 1 January 2027 until 30 June 2027:
  • The temporary 5 pence per litre (ppl) cut in the main rates of fuel duty (originally introduced at Spring Statement 2022) will be extended.
  • The further 3.7 ppl cut to the rebated rates for gas oil (red diesel), biodiesel, bioblend and kerosene for excepted machines other than for heating will be extended.
• From 1 July 2027:
  • Fuel duty rates will return to the levels that applied before the 5 ppl temporary cut was introduced in March 2022.
  • Fuel duty rates will be increased in line with RPI inflation.

Electric Vehicle Excise Duty (eVED)

It is proposed that from 1 April 2028:

• eVED will be introduced for battery electric, plug-in hybrid and hydrogen fuel cell electric vehicles, at 3 pence per mile for battery electric and hydrogen fuel cell vehicles and 1.5 pence per mile for plug-in hybrids.
• Rates will be uprated in line with CPI from 2029-30. Drivers will provide an odometer reading and estimate their mileage for the coming tax period when renewing.
• Following consultation, a mileage estimation tool will be available at launch, an opt-in ‘eVED Connect’ system will allow mileage to be reported using vehicles’ in-built connectivity, and an automated refunds model will be developed by 2030.

Vehicle Excise Duty (VED) and HGV Levy rates for 2027-28

It is proposed that from 1 April 2027:

• VED rates for cars, vans and motorcycles, VED for Heavy Goods Vehicles (HGVs) and the HGV Levy will increase in line with RPI.

VED exemption for search and rescue vehicles

It is proposed that from 1 April 2027:

• Eligible vehicles used for search and rescue activities will be exempt from VED.

VED support for HGVs

From 28 October 2026:

• Where the temporary reduced £1 annual HGV rate (1 July 2026 to 30 June 2027) is obtained for more than 12 months, the excess benefit may be recovered from the vehicle keeper as a civil debt.

Electricity Generator Levy (EGL)

• The previously announced increase in the EGL rate from 45% to 55% applies until 31 March 2028.
• The EGL will be extended beyond 2028 and will remain for the lifetime of the longest Wholesale Contract for Difference. The exemptions for new investment and Contracts for Difference will remain.
• A consultation on future EGL policy design will follow next year, with changes to be made in a future Finance Bill.

Carbon Price Support

It is proposed that from 1 April 2028:

• Carbon Price Support rates in Great Britain will end.

Visitor levies

• The Fiscal Devolution Roadmap will enable strategic authorities in England to introduce visitor levies, with local leaders able to set out plans for how revenues will be invested by March 2028.

Other Finance Bill 2026-27 measures

• A general power for the Treasury to neutralise the tax consequences of statutory reorganisations of public sector bodies, from Royal Assent.
• Validation of fees charged in connection with Certificates of Origin before 1 March 2027, from Royal Assent.
• A power for HMRC to dispose of seized goods before condemnation where continued storage or handling would involve unreasonable expense or be impracticable.

External links

HM Treasury: Autumn Budget 2026

HMRC: Overview of tax legislation and rates (OOTLAR)

Office for Budget Responsibility: Economic and fiscal outlook – October 2026