The Chancellor will deliver the Budget on Wednesday 28 October 2026, just over two weeks away. Speculation about new tax rises, particularly on capital gains, is growing. But several changes for April 2027 are already law or announced, and they matter more for most small business owners than any rumour. This guide separates what is confirmed from what isn’t, and gives you a short checklist to work through now.

What’s changed: the confirmed date

HM Treasury confirmed the date in the Chancellor’s letter to the Treasury Committee setting the Budget date: “The Budget will be held on 28 October 2026.” Announcements can take effect immediately on Budget day, so decisions that depend on current rules are best reviewed before then.

Already confirmed for April 2027

Higher tax on property and savings income

The government’s policy paper on tax rates for property, savings and dividend income sets out:

  • Property income from 6 April 2027: 22% basic, 42% higher, 47% additional rate (England, Wales and Northern Ireland).
  • Savings income from 6 April 2027: 22%, 42% and 47%.
  • Dividends already rose from 6 April 2026: ordinary rate 10.75%, upper rate 35.75% (additional rate unchanged at 39.35%).
  • From April 2027, allowances and reliefs will be set against other income first, before property, savings and dividend income.

Making Tax Digital at £30,000

Sole traders and landlords with turnover over £30,000 must use MTD for Income Tax from 6 April 2027. HMRC estimates over a million more people are affected (HMRC’s 5 October announcement).

Payrolling benefits in kind

From 6 April 2027 employers must report and tax most benefits in kind, such as company cars and private medical cover, through payroll, rather than on P11Ds. See HMRC’s guidance on getting ready for mandatory payrolling of benefits.

What is not confirmed

Newspaper and adviser commentary has focused on possible changes to capital gains tax, reliefs and allowances. None of this is confirmed. We will publish a summary of what is actually announced after 28 October.

Who it affects

  • Owner-managers paying themselves through dividends.
  • Landlords, especially higher-rate taxpayers.
  • Business owners considering a sale, gift or restructure in the next year.
  • Employers providing benefits in kind.

Key dates

  • 28 October 2026 – Budget day.
  • 5 April 2027 – end of the 2026/27 tax year.
  • 6 April 2027 – new property and savings rates, MTD £30,000 threshold and mandatory payrolling of benefits.

What you should do now

  1. Don’t act on rumour alone. Rushing a sale or gift to beat a change that may never happen can cost more than it saves.
  2. Do finish plans already under way. If a disposal or restructure is commercially ready, discuss timing with us before 28 October.
  3. Model your 2026/27 and 2027/28 income, salary, dividends and rents, using the confirmed rates.
  4. Landlords: review ownership and financing ahead of the 2027 property rates. Any change in ownership has CGT and SDLT consequences, so take advice first.
  5. Employers: talk to your payroll provider about payrolling benefits from April 2027.
  6. Book a post-Budget review so you can respond quickly to what is actually announced. FAQs

Will Budget changes apply straight away?

Some can, particularly anti-avoidance measures and some capital taxes. Most changes take effect from the next tax year, but you won’t know until the Budget documents are published.

Should I take extra dividends before the Budget?

Not without modelling it. Dividend rates already rose in April 2026. Paying extra now may push income into a higher band and bring tax forward for no benefit.

Is the rise in property income tax definitely happening?

It has been announced for 6 April 2027 for England, Wales and Northern Ireland. As with any measure, a future Budget could change it.

Talk to us before and after Budget day

Contact Alpha Business Services to review your plans before 28 October, and we’ll update you on what the Budget means for your business.