The Budget was held on Wednesday 26th November.
Several tax changes were announced, I’ve set out the main ones that affect individuals, landlords and the self-employed below:
Savings
From 6th April 2027 the below changes are planned to take place to the tax rates charged on savings income:
| Tax Band | Current Tax Rate | New Tax Rate | Percentage Change |
|---|---|---|---|
| Basic Rate | 20% | 22% | + 10% |
| Higher Rate | 40% | 42% | + 5% |
| Additional Rate | 45% | 47% | + 4% |
Dividends
From 6th April 2026 the below changes are planned to take place to the tax rates charged on dividend income:
| Tax Band | Current Tax Rate | New Tax Rate | Percentage Change |
|---|---|---|---|
| Basic Rate | 8.75% | 10.75% | + 23% |
| Higher Rate | 33.75% | 35.75% | + 6% |
| Additional Rate | 39.35% | 39.35% | - |
Landlords
From 6th April 2027 the below changes are planned to take place to the tax rates charged on property income.
The tax allowance for any loan interest paid will be at 22% from 6th April 2027.
| Tax Band | Current Tax Rate | New Tax Rate | Percentage Change |
|---|---|---|---|
| Basic Rate | 20% | 22% | + 10% |
| Higher Rate | 40% | 42% | + 5% |
| Additional Rate | 45% | 47% | + 4% |
Income Tax Thresholds
The current freeze on annual increases is to be extended until 2031.
ISA Accounts
At present there is an annual £20,000 contribution limit which can be saved in either cash or investments.
The cash element is to be reduced from £20,000 to a maximum of £12,000 a year. (Unless you are over 65.)
Road Fuel Duty
At present there is a 5p a litre reduction, however this will start to be phased out from September 2026:
- 1p increase from September 1, 2026.
- 2p from December 1, 2026.
- 2p from March 1, 2027 (full reversal).
- From April 2027, fuel duty will rise with Retail Prices Index (RPI) inflation annually.
Electric Car Mileage
From April 2028, drivers of electric vehicles will be charged 3p per mile.
Drivers of plug-in hybrid vehicles will be charged 1.5p per mile.
(While charging an electric vehicle at home incurs VAT at 5%, public chargers are already charged at 20% VAT.)
