UK: Tax measures in Autumn Budget 2026

The Autumn Budget 2026 includes the following proposed tax measures of interest to businesses:

• Savings income tax: Increase in rate of withholding tax on interest paid by UK companies from 20% to 24%, effective April 6, 2027
• Capital allowances:
  • Decrease in main rate writing-down allowance from 14% to 12% effective April 1, 2027
  • Increase in main rate first-year allowance from 40% to 50% for spending incurred on or after January 1, 2027
• Banking surcharge: Temporary increase from 3% to 6% effective January 1, 2027, to March 31, 2028
• Securities transfer tax: Replacement of stamp duty and stamp duty reserve tax with securities transfer tax effective late 2027
• Sovereign tax status: Introduction of statutory direct tax regime for those with sovereign tax status effective January 1, 2029, bringing returns from directly held UK land into the charge to tax
• VAT on land sales: Introduction of new zero rate of VAT for sales of land to registered housing providers, effective April 1, 2027
• Stamp duty land tax (SDLT): Change of control test under group relief rules to prevent avoidance during corporate wind-ups
• Oil and gas revenue levy (OGRL): Replacement of 35% levy on exceptional revenues with temporary energy profits levy by April 1, 2030
• Exploration rights: Express treatment of relevant UK seabed and subsoil rights as immovable property under income tax treaties
• VAT and climate change levy (CCL): Exclusion of public/workplace EV charging from domestic CCL, effective November 1, 2026
• Soft drinks industry levy (SDIL): Decrease in application threshold to 4.5g of sugar per 100ml effective January 1, 2028, and repeal of milk and milk-substitute exemptions but introduction of lactose allowance.
• Plastic packaging tax (PPT): Increase in PPT in line with CPI effective April 1, 2027, and mandatory certification for the 30% recycled threshold, effective April 1, 2030
• Alcohol and fuel: Increase in alcohol duty in line with the retail prices index (RPI) effective February 1, 2027, and extension of temporary 5p fuel duty freeze to June 30, 2027
• Tariff suspensions: Suspension of tariffs on over 100 food products and kerosene until December 31, 2028, and on fertilizer until December 31, 2027
• Gaming duties: Increase in machine games duty for higher stakes from 20% to 25%, effective April 1, 2027
• Online marketplaces: Extension of online marketplace liability to October 2027, making platforms responsible for collecting VAT on sales by unregistered UK businesses over a £90,000 threshold
• E-invoicing: Mandatory electronic format VAT invoices from April 2029
• Reverse charge and service providers: Application of reverse charge for B2B services from overseas only to VAT-registered UK businesses, effective April 2027
• Zero-rated health supplies: Introduction of zero-rating retroactive to June 23, 2026, for medicines provided free of charge for NHS treatments and clinical trials

The budget also includes various measures relevant to employers and individuals.

Further information on and analysis of the Autumn Budget 2026 from the KPMG member firm in the United Kingdom can be found here.