10 Autumn Budget | 28 October 2026 Energy costs The VAT cut to domestic electricity is extended until July 2027. A new household energy payment will pay £100 directly into bank accounts from January 2027 for households in England in council tax bands A–D. Devolved governments will receive their share of this funding via the Barnett formula. Domestic gas standing charges will be removed in 2027 or early 2028 and domestic electricity standing charges will be reformed – details to be announced in 2027. The 5p road fuel duty cut and freeze is extended to 1 July 2027. Business taxes Corporation tax rates Corporation tax rates remain unchanged at 25% main rate and 19% small profits rate from 1 April 2027 and 2028. Capital allowances The main rate first-year allowance will be increased to 50% for expenditure incurred after 31 December 2026, while the main rate writing down allowance will be reduced to 12% from 1 April 2027 for corporation tax and 6 April 2027 for income tax. Trading allowance The trading allowance for individuals is increased to £3,000 (from £1,000) from 6 April 2027. Self-employed individuals can claim this relief instead of deducting their actual business expenses. The trading income reporting threshold for selfassessment will also rise to £3,000. Research and development (R&D) tax reliefs Companies will no longer have to submit a claim notification form for R&D claims made from 1 April 2027. From autumn 2027 the information required in the additional information form will be simplified. Saver Don't forget that the firstyear allowance for plant and machinery will be increased from 40% to 50% from 1 January 2027.
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