Gone are the days of “Budget purdah” when every Budget Day announcement was a surprise and rabbits were produced from hats. A great deal of the Budget has already been announced.
Here are what we think are the most important points for you; some have been announced in the run up to the Budget, some in the Budget and some both!
Income tax and NI
From 06/04/2026, tax free mileage rates for the first 10,000 miles of business journeys increased to 55p (from 45p).
From 06/04/2027 increased from 25p to 35p for the excess over 10,000.
From 06/04/2027 The Trading Allowance will increase to £3,000 from £1,000.
Pensioners with total income up to the value of the new State Pension will pay no Income Tax from 6 April 2027 until 5 April 2030.
From 06/04/2027 income tax rates on savings income and property income are all increased by 2%.
Business
Business rates relief for pubs, social clubs and live music venues will increase from 15% to 35% from 01/04/2027. Vape shops and Adult Gaming Centres will cease to be eligible for relief from the same date.
Increased valuation thresholds for Small Business Rate Relief for retail, hospitality and leisure properties from £12,000 to £18,000 for 100% relief and from £15,000 to £21,000 for tapered relief from 1 April 2027.
First Year Allowance increased to 50% and Writing Down Allowance reduced to 12% from 01/01/2027.
Machine Gaming Duty for higher stake machines will increase to 25% from 01/04/2027.
Minimum/living wage hourly rates increase by 3.9% from 01/04/2027 to:
21 and over £13.21
18 to 20 £11.27
Under 18 & apprentices £8.31
Other Announcements
The VAT cut on domestic fuel from 5% to 0% will continue until 01/07/2027 as will the freeze on fuel duty.
From 06/04/2029 a Parental Allowance for fathers, partners and adopters not currently eligible for parental pay will be established.
The cash ISA limit of £20,000 will not be reduced as previously announced.
From 01/04/2027 land sold to registered social housing providers to be zero rated for VAT.
From 06/04/2027 the Business Asset Disposal Relief lifetime allowance will reduce to £500k
From 06/04/2027 there will be a new CGT Founders’ Relief, providing a 10% CGT rate on up to £10 million of lifetime gains for “qualifying founders of high-growth, innovative companies”. Full details will emerge following technical consultation.
As usual the devil is in the detail, and we will not necessarily know the exact impact until the changes have been passed through parliament. If you have any questions about how these changes many affect you or your business, please contact your local AIMS accountant.
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