Understand what changes, and when
Separate the next announcement from the rules you need to use today. Here is the current position, with the official sources alongside it.
The useful detail
Selected developments relevant to business owners and individuals. Each item distinguishes current HMRC rates from an announced future change. This is a practical selection, not an exhaustive Budget report or a legal-status review of every measure.
The ordinary dividend rate is 10.75% and the upper rate is 35.75%; the additional rate remains 39.35%. The dividend allowance is £500. Your tax band and available allowances determine the amount payable.
Review your dividend tax provision and payments on account with your accountant before deciding how much to draw from your company.
Budget 2025 announced that the £12,570 Personal Allowance and £50,270 higher-rate threshold would be maintained from April 2028 to April 2031. Scottish rates and bands for non-savings, non-dividend income differ.
Model the effect of rising income against fixed thresholds. Check current HMRC guidance and personal-allowance tapering before calculating your position.
HMRC’s published measure specifies savings rates of 22%, 42% and 47% from 6 April 2027. These are separate from the rates applying to savings income in 2026/27.
Keep this future date separate in your forecast. The starting rate for savings, Personal Savings Allowance and tax-exempt accounts can change the result.
The published measure sets out separate property-income rates of 22%, 42% and 47% from 6 April 2027. Territorial rules and any subsequent changes need checking for your circumstances.
Landlords should review expected rent, allowable costs, finance-cost relief and their own tax position rather than applying a headline rate to gross rent.
HCA planning checklist
Have current bookkeeping, expected year-end profit and a cash forecast ready. Good information makes it easier to assess a confirmed change.
Note planned equipment purchases, hiring, dividends, property transactions and pension contributions. Discuss the timetable with the appropriate adviser.
Some measures start immediately, others later, and some require legislation. Check the final wording and commencement date before changing your plans.
Your business structure, tax residence, income sources and accounting period can make a headline irrelevant or materially change its effect.
Read it at source
Forecasts, policy announcements and legislation serve different purposes. For decisions, confirm the current rules, effective date and eligibility with the official guidance and your adviser.
What does it mean for you?
We’ll help you work through the accounting and tax questions behind your next decision.
