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clientservices@lsrpartners.comThe Autumn Budget 2026 made very little noise. Some of the most important changes sit in the supporting paperwork, not the speech.
Savers and landlords will pay more tax. HMRC also plans to look harder at assets held abroad.
Simon Roue of LSR Partners gave his verdict in the latest Tax Compass Podcast. Here is what you need to know.
From April 2027, income tax on savings and rental income rises again. The new rates are 24%, 44% and 49%. Your rate depends on your tax band.
That is four points above the standard rates of 20%, 40% and 45%. In effect, savers and landlords now pay a surcharge.
Simon sees this as part of a wider pattern. Landlords have faced tax rises throughout this parliament. Savers now face similar treatment.
If you hold savings or let property, now is a good time to review your position.
This is good news for anyone with a side business. The trading allowance rises from £1,000 to £3,000 from April 2027. You can receive up to £3,000 of trading income before tax applies.
Last year, the government raised the reporting threshold to £3,000. The tax position stayed the same. Now the two figures line up.
Simon welcomes the change. He also notes that it makes only a small difference.
The full state pension rises to £13,036 from April 2027. That takes it above the personal allowance of £12,570.
The government has long said the full state pension should not be taxed. The simplest answer would be a higher personal allowance for everyone. That would cost too much.
Instead, the government has created a new pension allowance. You lose £1 of it for every £3 of income above the full state pension.
Simon questions this approach. The government talks often about simplifying tax. This adds another layer. Withdrawing an allowance also raises the marginal tax rate for people on modest incomes.
Rachel Reeves planned to cut the cash ISA allowance to £12,000. The government has now dropped that plan.
The ISA allowance stays at £20,000. This applies to both cash ISAs and stocks and shares ISAs.
The Budget introduced founder’s relief. It sounds like support for entrepreneurs.
Simon is cautious. Look at the detail and few people are likely to qualify. At the same time, entrepreneurs face higher taxes elsewhere.
HMRC wants people to pay self assessment tax earlier. Its first idea was compulsory collection through PAYE.
Imagine you are an employee with a rental property. Your tax code would collect tax on your expected rent. If your tenant moved out, you would pay tax on income you no longer receive.
The government has now dropped compulsory PAYE collection. It is likely to offer voluntary PAYE coding instead. It also plans more frequent payments on account. HMRC would like monthly payments. Simon expects quarterly payments in the end.
Payments on account are based on last year’s tax bill. You can apply to reduce them if your income falls. More frequent payments make this more demanding.
None of this starts before April 2029. There will be further consultation first.
This is the change Simon considers most significant. HMRC has published a multi year plan to tackle tax avoidance among wealthier taxpayers.
HMRC believes it is missing revenue from wealthy people. Its definition of wealthy may be broader than you expect. Many homeowners in the South East could be close to it on property values alone.
The plan relies on joined up working, information sharing and AI. HMRC wants to look much more closely at people’s affairs.
Offshore assets are a particular focus. HMRC believes many UK residents hold assets abroad that it does not know about. Information sharing on overseas property is still limited.
Simon expects more complex HMRC enquiries about foreign assets over the next two or three years. He expects the changes to feed into the system gradually.
You do not need to panic. Closer scrutiny is manageable when your affairs are in order.
Start with your records. Know what you hold overseas and what income it produces. Check that you have reported it correctly in the UK.
If HMRC does contact you, a clear response matters. Specialist help makes that process calmer and quicker.
The Tax Compass Podcast will cover HMRC’s wealth plan in full in a future episode.
Watch on YouTube: https://www.youtube.com/watch?v=YPMV3lgj8jI
Listen on your podcast app: https://player.captivate.fm/episode/7f9c2a38-811a-436b-8467-2317787148c6/
LSR Partners help you pay the right tax in the right place at the right time. Book a call at lsrpartners.com.
This article is for general information purposes only and does not constitute tax advice. Please contact us to discuss your specific position.
