03 Nov 2026 Key budget implications for landlords and businesses

The Autumn 2026 budget saw income tax surcharge on property income increased to 4% from the 2027-28 tax year.

Businesses will be able to pay a higher tax-free mileage rate to their employees who use their own cars for business. The previously announced 55p per mile rate for the first 10,000 business miles is to be made permanent, and, from 6 April 2027, the rate payable for mileage above 10,000 miles during the year will rise from 25p to 35p per mile.

The National living wage rate for adults aged 21 and over will increase from £12.71 to £13.21 per hour on 1 April 2027.

From April 2027, the small business rates relief threshold for retail, hospitality and leisure properties rises from £12,000 to £18,000 in rateable value for 100% relief, with a corresponding adjustment of £15,000 to £21,000 for tapering relief. 

For capital assets outside full expensing, the first-year allowance rises from 40% to 50% for spending from 1 January 2027. At the same time, the yearly relief on balances in the main pool drops from 14% to 12% from 1 April 2027. 

Read more about the budget implications on the Azets website.