The Budget at a glance
Today’s Budget includes support for business costs, alongside higher taxes for some landlords, savers and business owners.
Here are the key announcements:
Landlords and savers: higher tax rates from April 2027.
Selling your business: the Business Asset Disposal Relief lifetime limit will halve to £500,000 from April 2027.
Business mileage: 55p per mile for the first 10,000 qualifying miles becomes permanent, with 35p above that threshold from April 2027.
Employers: minimum wage rates will rise by 3.9%.
Motorists: the 5p fuel duty cut and freeze continues until July 2027.
High street businesses: further business rates support in England.
Cash ISA savers: the £20,000 annual limit is being retained.
Our view: review your expected tax bills, payroll costs and cash flow before the changes take effect. If you’re considering selling your business, start planning early.
What do the changes mean in practice?
The impact of a Budget depends on how you earn your income, run your business and plan for the future. Below, we explore the announcements most relevant to small businesses, landlords and the self-employed.
Higher tax rates for landlords and savers
From 6 April 2027, property income tax rates will be 24%, 44% and 49% in England, Wales and Northern Ireland. The same rates will apply to savings income across the UK.
These include a further two percentage point increase on the rates already planned for that date.
For landlords, this makes an updated tax forecast particularly useful. The money left after mortgage payments and running costs does not necessarily reflect your taxable rental profit.
Reviewing your expected liability now can help you set aside enough money and avoid pressure on cash flow when payment falls due.
For savers, the government is retaining the £20,000 annual cash ISA limit. Your overall tax position will depend on the interest you receive, available allowances and how your savings are held.
Less relief when selling a business
The Business Asset Disposal Relief lifetime limit will fall from £1 million to £500,000 from 6 April 2027.
If you are considering selling your business, retiring or transferring ownership, this deserves attention before contracts are signed.
The lifetime limit concerns qualifying gains, rather than the sale price of your business. Eligibility and any previous use of the relief also matter.
A sale should make commercial sense, but understanding the tax position early gives you more time to assess your options and the amount you could retain.
Higher business mileage allowances
The 55p rate for the first 10,000 qualifying business miles in your own car or van is being made permanent, applying from 6 April 2026.
The rate above 10,000 miles will rise to 35p from 6 April 2027.
Employers and eligible self-employed people should check that expense processes use the correct rates and dates.
The allowance is not an automatic payment from HMRC. Its effect depends on whether you receive mileage reimbursement or claim tax relief.
Keep a clear record of business journeys, including the date, purpose and mileage, so claims can be supported.
Employers should review wage budgets
The Budget announced a 3.9% increase in National Living Wage and National Minimum Wage rates.
For employers, the cost can extend beyond the hourly pay increase. Pension contributions, employer National Insurance and the cost of maintaining differences between pay grades may also be affected.
An updated payroll forecast will help you understand the effect on your margins. This is particularly useful if you employ several people close to minimum wage levels or are preparing prices for future work.
Business rates support for the high street
The government announced further business rates support in England, including an additional 20% reduction for pubs, music venues and social clubs, alongside wider relief for eligible retail, hospitality and leisure businesses.
Other properties within those sectors will receive a two-year freeze in real terms.
A freeze in real terms does not necessarily mean your bill will stay unchanged in pounds.
If you occupy commercial premises, check your eligibility and the calculation on your next rates bill. Use the relief your business actually qualifies for when preparing forecasts.
Fuel duty support continues
The 5p fuel duty cut and freeze will continue until 1 July 2027.
This provides some certainty for businesses that depend on vehicles, including trades, delivery businesses and mobile service providers.
Fuel prices can still move, so it remains sensible to review vehicle costs when pricing jobs and setting budgets.
What should you do next?
The most useful response to a Budget is to put the relevant announcements into your own figures.
Employers: update payroll forecasts and review margins.
Landlords and savers: estimate your tax liability for the coming year.
Business owners: check mileage policies and business rates eligibility.
Anyone planning a sale: review the likely tax outcome before committing.
How Arctic Accounting can help
At Arctic Accounting, we help businesses across the North West and throughout the UK turn tax announcements into practical decisions.
Whether you need an updated tax forecast, help understanding your payroll costs or advice ahead of a business sale, we can help you assess the impact and plan your next steps.
Contact Arctic Accounting to discuss what the Budget means for you and your business.
Digitise. Simplify. Deliver.
Published 28 October 2026. This article summarises selected Budget announcements and provides general information. Measures awaiting legislation may change, and the tax treatment depends on your circumstances.
Source: HM Treasury, Budget 2026.
