For Business Owners

Corporation Tax Main Rate: The main headline rate of Corporation Tax remains frozen at 25%.

Capital Allowances Adjustment:

• First Year Allowances (FYA): Main rate FYA increases from 40% to 50% for qualifying plant and machinery expenditure incurred on or after 1 January 2027.
• Writing Down Allowances (WDA): Main rate WDA is reduced from 14% to 12% starting April 2027.

Business Rates Support (England):

• Small Business Rates Relief (SBRR) thresholds for qualifying Retail, Hospitality, and Leisure (RHL) properties rise from £12,000 to £18,000 for 100% relief.
• Relief for pubs and live music venues increases from 15% to 35% from April 2027.

For Individuals

Property & Savings Income Rates (From April 2027): Rates on non-dividend, non-paye income (property and savings) will increase to 24% (basic rate), 44% (higher rate), and 49% (additional rate).

Self-Assessment Timely Payments (From April 2029): HMRC will introduce more regular in-year payments for Self-Assessment taxpayers making payments on account, moving closer to real-time taxation.

Cash ISA Limits Protected: The government reversed the previously planned reduction to the cash ISA limit, keeping the allowance at £20,000.

National Living Wage (NLW): NLW and National Minimum Wage rates will rise by 3.9% from April 2027, impacting payroll costs for employer-directors.

Fuel Duty: The 5p fuel duty discount remains frozen until 1 July 2027, after which the cut will be fully reversed alongside an RPI inflation adjustment.

Household Support

£100 Household Energy Payment:

• Who gets it: Up to 20 million households in England in Council Tax bands A to D.

0% VAT on Household Electricity Extended: The 0% VAT rate on domestic electricity has been extended to 30 June 2027 (previously set to expire earlier), cutting roughly £50 off average annual energy costs.

Fuel Duty Cut Extended: The temporary 5p-per-litre cut on fuel duty stays frozen until 1 July 2027, saving average commuters over £50 per year at the pump.

Protected Cash ISA Allowance: The annual cash ISA limit remains held at £20,000, protecting tax-free savings allowances for everyday savers.