Budget day is Wednesday 28 October: what we know, and what we don’t

The Chancellor will deliver the Budget on Wednesday 28 October 2026. Between now and then there will be plenty of speculation about what might change.

Our approach is simple. We’ll comment on what is actually announced, not on rumours. In the meantime, it helps to separate what is already law from what is only being discussed.

The date

The Budget is on Wednesday 28 October 2026. It will be published together with a forecast from the Office for Budget Responsibility (OBR). The government confirmed the date on 31 July 2026 (HM Treasury announcement; the Chancellor’s letter to the Treasury Select Committee).

Budget representations closed at 23:59 on 9 September 2026.

What’s already law

These changes are already law. They stand whatever the Budget says, unless the Budget changes them:

• Inheritance tax relief for farms and businesses: 100% agricultural and business property relief is capped at a combined £2.5 million, from 6 April 2026 (GOV.UK; Finance Act 2026).
• Dividend tax: the ordinary rate is 10.75% and the upper rate is 35.75% (GOV.UK).
• Capital gains tax: the main rates are 18% and 24%, and Business Asset Disposal Relief is 18% (CGT rates; BADR).
• Making Tax Digital for Income Tax: extends to sole traders and landlords with self-employment and property income over £30,000 from 6 April 2027 (HMRC).
• Property and savings income: income tax rates of 22%, 42% and 47% from 6 April 2027 (GOV.UK; Finance Act 2026). For Scottish and Welsh taxpayers, the property income rates will be set by the Scottish Parliament and the Senedd, so they may differ (Finance Act 2026, section 8).
• Pensions and inheritance tax: for deaths on or after 6 April 2027, most unused pension funds and death benefits count as part of the estate (HMRC technical note).

Not yet law: HMRC plans to bring in reporting and paying tax on benefits in kind through payroll in two phases. The first phase, from 6 April 2027, is due to cover company cars, car fuel, vans, van fuel and employer-provided medical benefits. Most other benefits in kind are due to follow from April 2028. Employer-provided loans and accommodation are left out of both phases for now, and HMRC says it will confirm how they will be treated later (HMRC policy paper). HMRC has published draft legislation, but it has not yet been laid before Parliament.

If any of these affects you, there’s no need to wait for 28 October to start talking about it. We plan to recheck each one against what is announced.

What isn’t law: consultations

Several ideas have been out for consultation. A consultation is not law. These include:

• recovering lower-value tax debts from bank accounts (closed 28 August 2026);
• mandatory Direct Debit for VAT and PAYE (closed 16 August 2026);
• the distributions framework (closed 14 September 2026);
• National Insurance recovery time limits (closed 12 October 2026).

For the government’s wider plans, see Tax Update 2026: simplification, modernisation and fairness (summary) on GOV.UK.

Planning around the Budget

If you’re planning a sale, an incorporation or a big extraction of money from your company, talk to us first. Timing around a Budget is a planning point, not a reason to panic.

Try not to rush a decision because of a headline. Equally, if you’ve already made a plan, check with us after 28 October whether anything announced affects it.

Once we’ve checked the Budget documents, we plan to publish a follow-up on what was actually announced.

Sources

Our main sources are HMRC and GOV.UK:

• HM Treasury news: Budget date announcement
• Letter to the Treasury Select Committee: Budget 2026 date
• Tax Update 2026: simplification, modernisation and fairness (summary)
• Agricultural property relief and business property relief changes
• Tax on dividends
• Capital Gains Tax: rates
• Business Asset Disposal Relief
• HMRC news: sole traders and landlords earning more than £30,000 urged to act now
• Income Tax: changes to tax rates for property, savings and dividend income
• Technical note: Inheritance Tax on pensions
• Finance Act 2026, legislation.gov.uk
• HMRC policy paper: Changes to reporting of benefits in kind from April 2027
• Mandatory payrolling of benefits in kind and expenses: interim guidance and legislation
• Consultation: requiring payment of VAT and PAYE return liabilities by Direct Debit
• Consultation: modernising the distributions framework
• Agent Update: issue 147

Talk to us before you act

If you have a decision coming up and want to talk through the timing, we’re here to help. Call us on 020 7164 0225, send us a WhatsApp message or email your tax enquiry to hello@ibandco.co.uk.

See also our Business Tax Advisory, Director Tax Planning and Personal Tax Planning services.

Checked on 9 October 2026. The Budget on 28 October 2026 may change some of these rules and rates. We plan to review this post after the Budget. Please check with us before acting.