The Big Budget Tax Changes 2027/28

Every recent tax change. One single book.

by Carl Bayley & Nick Braun

A relentless wave of tax announcements in the last few years (including the October 2026 Budget) has left individuals and businesses scrambling to keep up.

This brand new guide covers every recent tax change in one definitive volume: an all-in-one resource with each major tax announcement explained in plain English and lots of examples.

And as always with Taxcafe guides, the focus is on providing actionable tax saving strategies – the guide contains a huge amount of unique tax planning information that cannot be found elsewhere.

The guide is essential reading for:

• Company owners
• Self-employed business owners
• Property investors and landlords
• Salary earners
• Pension savers and ISA savers
• Anyone interested in inheritance tax

What Information is Contained in the Guide?

Income Tax Overview
How ALL major types of income are taxed: salaries, self-employment profits, property, savings and dividend income, plus all the various reliefs and allowances, including the new Pension Tax Allowance – a useful building block for the tax planning chapters that follow. For company owners there is also a chapter which provides a plain English guide to corporation tax.

The Impending Cashflow Crisis: Self-Assessment Taxpayers
From April 2029 HMRC will automatically take the money it thinks you owe directly from your bank account. In the first year you will have to pay two years’ worth of tax in a single year. This chapter explains how you can protect yourself from this cashflow crisis – some techniques require action now, before April 2027. In one example the taxpayer ends up over £20,000 better off in cash terms at points during the 2029/30 "crisis" year.

Salary versus Dividends 2027/28
Find out how much salary income you should pay yourself this year (2026/27) and next year (2027/28). Following changes announced in the October 2026 Budget a salary smaller than £12,570 may be more tax efficient in some cases. In other cases a salary much larger than £12,570 may save more tax.

Capital Gains Tax
An overview of CGT plus all the latest changes including:

• Cuts to Business Asset Disposal Relief... and what you can do both before April 2027 and after
• The new Founders' Relief (10% CGT) and who will be able to claim it
• Reporting UK residential property sales: a new penalty relaxation

The Income Tax Freeze
No let up in the October 2026 Budget. Income tax thresholds will remain frozen for another four years until 5th April 2031. This could increase your overall income tax rate by an astonishing 7%. Find out how to beat the freeze and enjoy tax relief at 60% instead of 40% or 40% instead of 20% by either postponing or accelerating certain types of spending (pension contributions, business investments etc).

The Increased £3,000 Trading Allowance
If your self-employment expenses are less than £3,000 you can claim this allowance instead of your actual expenses, saving you up to £1,260 as a higher-rate taxpayer.

Inheritance Tax
Three dedicated chapters cover the recent changes to business and agricultural property relief and the introduction of inheritance tax on pensions (from April 2027). There was good news for charitable pension savers in the October 2026 Budget and we explain the tax planning opportunity that could leave both your chosen charity and other beneficiaries better off.

We also explain how the 22-year freeze in the £325,000 nil rate band is making IHT planning more important than ever.

Another Tax Increase for Landlords and Savers
The tax rates payable on rental income and interest income are now increasing by 4% and we look at the impact of these increases. For landlords we explain the impact on mortgage tax relief.

Electric Cars and other Capital Allowances
Electric cars currently qualify for 100% tax relief. This will be taken away in April 2027. We explain what happens after that and provide possibly the clearest explanation of the UK's complex capital allowance system you will find anywhere.

Tax Planning for Company Owners
Most dividend tax rates increased on 6th April 2026. This chapter explains how company owners can save tax by paying themselves bigger dividends in some tax years and smaller dividends in other years to avoid the 35.75% rate that kicks in at £50,270 and the 58.25% rate that kicks in at £100,000. In one worked example a company owner saves almost £10,000 by changing the timing of their dividends.

Using a Company to Save Tax
Is it a good idea to set up a company? This chapter contains useful tables showing the exact amount of tax you could save or end up paying. We also explain how transferring a business into a company has changed following recent Budget announcements.

Salary Sacrifice Pensions
The Government is placing a cap on full tax relief for both income tax AND national insurance on salary sacrifice pensions. We explain the changes and how to make the most of this powerful tax saving benefit before the change kicks in. There’s better news for regular employer pension contributions and small company owners.

Cash ISAs
The Government has scrapped its badly thought-out plan to restrict cash ISAs and tax interest in stocks and shares ISAs. We explain what this now means plus recent changes to Lifetime ISAs and the new First-Time Buyer ISA.

Tax Quirks
The UK tax system seems to have more quirks every year, often leading to unexpected consequences. We explore these strange interactions and the pitfalls you need to watch out for: such as when so-called tax-free savings income or dividends can actually have a significant cost, or when a little extra salary could end up being taxed at 104%.

All the Other Changes
The guide also covers a wide range of other issues including:

• Changes to approved business mileage rates
• The latest news on Making Tax Digital
• Changes to the way benefits-in-kind are taxed: another measure designed to make you pay your tax much earlier
• Tax planning for the winter fuel charge
• The new Mansion Tax
• Tax changes that did not happen
• Tax changes announced before the Budget

Click here to read the full contents listing and first section of the book