by Asim Abbas
12 November 2026 
Budget 2026 explained: what the 28 October Budget means for you
Budget 2026 explained: what the 28 October Budget means for you
Chancellor John Healey delivered his first Budget on 28 October 2026.
- Capital Gains Tax rates stay at 18% and 24%, with a £3,000 allowance.
- Business Asset Disposal Relief lifetime limit halves to £500,000 from 6 April 2027.
- A new Founders’ Relief of 10% is planned from April 2027.
- A further rise in property and savings income tax rates from April 2027.
- MTD penalty soft landing for people joining in April 2027.
Here are the changes most likely to affect sole traders, landlords, company owners and savers, in plain English.
Capital Gains Tax
- Main rates unchanged: 18% and 24%, with the annual exempt amount staying at £3,000.
- Business Asset Disposal Relief: the lifetime limit falls from £1 million to £500,000 for disposals on or after 6 April 2027. The rate stays at 18%. Business owners planning a sale should look at timing now. See our BADR guide.
- Founders’ Relief: a proposed new relief from 6 April 2027 with a 10% rate on up to £10 million of lifetime gains for qualifying founders and early investors in high-growth innovative companies.
Selling a business or property?
Estimate your Capital Gains Tax before April 2027.
Landlords and savers
Property and savings income are moving to their own Income Tax rates from April 2027, and the Budget announced a further 2 percentage point increase from that date. Landlords should review whether personal or company ownership suits them best before April 2027. See incorporating a property portfolio and our property accountants.
Making Tax Digital
Making Tax Digital for Income Tax still expands to people with qualifying income over £30,000 from April 2027. Those joining then will not get penalty points for late submission of their first four quarterly updates for 2027/28. See who must sign up for MTD.
Other changes worth knowing
- Paying tax through PAYE: the plan to collect some Self Assessment tax in real time through PAYE will be optional.
- VAT e-invoicing: mandatory e-invoicing for VAT invoices is planned from April 2029.
- Pension death benefits: the two-year rule that could make tax-free death benefits taxable when paid late has been removed from 28 October 2026. Unused pensions still come into Inheritance Tax from 6 April 2027; see pensions and Inheritance Tax.
- Personal allowance: stays at £12,570.
Most of these measures still need to pass into law through the Finance Bill, so details can change.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179What should I do next?
Business sale, property, savings or MTD.
Several changes start on 6 April 2027.
Free first consultation, fixed fees.
Frequently Asked Questions
When was Budget 2026?
The Chancellor, John Healey, delivered the Budget on 28 October 2026.
Did Capital Gains Tax rates change in Budget 2026?
No. The main rates stay at 18% and 24% and the annual exempt amount stays at £3,000.
What happened to Business Asset Disposal Relief?
The lifetime limit will fall from £1 million to £500,000 for disposals on or after 6 April 2027. The rate stays at 18%.
Is Making Tax Digital still going ahead?
Yes. It expands to qualifying income over £30,000 from April 2027, with no penalty points for the first four late quarterly updates for 2027/28.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
