Chancellor John Healey delivered Budget 2026 on Wednesday 28 October. For insurance providers, brokers, MGAs and the brands and publishers that sell cover to their audiences, the Budget 2026 insurance story sits in measures for working drivers and the property market. The tax on premiums takes up one table in the Treasury pack.
Budget 2026 key dates and insurance lines
| Effective Date | Budget 2026 Measure | Audience | Insurance Line |
|---|---|---|---|
| Immediate (Permanent) | 55p tax-free business mileage rate (first 10,000 miles) made permanent | 2m employees and 1m self-employed drivers | Business Car and Van Insurance |
| Feb to Apr 2027 | £4.7bn Your First Home equity loan scheme launches in England | Around 70,000 first-time buyer households | Home and Buildings Insurance |
| 1 April 2027 | Vehicle Excise Duty (VED) rises with RPI for cars, vans and motorcycles | UK motorists and van owners | Car, Van and Motorbike Insurance |
| 6 April 2027 | Mileage rate above 10,000 miles rises from 25p to 35p per mile | High-mileage business drivers | Business Car and Van Insurance |
| 6 April 2027 | Property income tax rises to 24% basic, 44% higher and 49% additional (E&W, NI) | Private residential landlords | Landlord Insurance |
| 6 April 2027 | Trading Allowance rises from £1,000 to £3,000 | Sole traders and micro-businesses | Public Liability Insurance |
| 1 July 2027 | Temporary 5p-per-litre fuel duty cut ends | UK road users and commercial fleets | Motor and Fleet Insurance |
| 2 January 2028 | 20% VAT applied to full fares for large private hire operators | Private hire operators and PHV drivers | Taxi and Private Hire (Hire and Reward) |
| 1 April 2028 | Electric Vehicle Excise Duty (eVED) begins | Electric vehicle owners and fleets | EV Car and Van Insurance |
What does Budget 2026 set for Insurance Premium Tax?
Annex A to the Budget’s overview of tax legislation and rates lists Insurance Premium Tax (IPT) at 12% for the standard rate and 20% for the higher rate across both 2026-27 and 2027-28. HMRC’s rates table shows both rates have applied since 1 June 2017. The higher rate covers travel insurance, mechanical or electrical appliance insurance and some vehicle insurance.
Neither the Budget document, its tax overview nor the speech mentions the tax elsewhere. For an insurance provider or distribution partner, the Budget touches insurance through the customers whose financial circumstances it changes.
Which motor insurance audiences does the business mileage change reach?
The change reaches drivers who use their own car or van for work. Under Approved Mileage Allowance Payments (AMAP), the 55p tax-free rate for the first 10,000 business miles, announced as a temporary measure in May, is now permanent. Above 10,000 miles, the rate rises from 25p to 35p from 6 April 2027. Both changes were announced on 27 October and confirmed in the Budget.
The Budget document puts the beneficiaries at around 2 million employees and 1 million self-employed people, including care workers, electricians and plumbers. By the government’s estimate, a basic-rate taxpayer driving 6,000 business miles gains an extra £120 a year in tax savings in 2027-28, rising to up to £300 a year at 15,000 business miles.
Those drivers need the right class of use on their policy. The Association of British Insurers (ABI) states that anyone using a car as part of their employment needs business use cover, and that the wrong level of cover may invalidate a policy.
Elsewhere in motoring taxes, the 5p fuel duty cut now runs to 1 July 2027, with pump diesel above £2 a litre this October. Vehicle Excise Duty (VED) for cars, vans and motorcycles rises with RPI from 1 April 2027. Electric Vehicle Excise Duty (eVED), announced at Budget 2025, follows on 1 April 2028.
What does the private hire VAT change mean for taxi audiences?
From 2 January 2028, larger private hire operators will be liable for 20% VAT on the full value of their fares. The government will shortly publish a consultation on the size threshold, with £50 million of annual fare turnover as the lead option. The Budget speech commits to protecting smaller local firms.
The VAT liability falls on operators rather than individual drivers, though trade and driver titles now have a dated tax change to explain before January 2028. The ABI confirms that anyone carrying fare-paying passengers needs hire and reward insurance, and our post on why the badge decides the private hire policy covers the driver side.
Which property measures reach landlords and first-time buyers?
From 6 April 2027, property income will be taxed at 24% basic, 44% higher and 49% additional rates in England, Wales and Northern Ireland. That is two percentage points on top of the rise Budget 2025 set for the same date, moving the basic rate for property income from 20% to 24%.
Letting a home changes what a standard policy covers. The ABI’s home insurance guide lists restricted cover once a home is let to tenants among the usual limits of a standard policy. Our Renters’ Rights Act post sets out the wider landlord compliance case.
In England, the £4.7 billion Your First Home scheme is due to issue its first loans from April 2027, following pre-registration in December 2026 and full applications in February 2027. It offers first-time buyers purchasing a new-build home an equity loan of up to 20%, interest-free for five years, with a minimum 2.5% deposit. The government says it will help around 70,000 households. Buyers usually arrange buildings insurance by exchange of contracts as a condition of their mortgage. Home insurance comparison for property and mortgage brands explains where that fits into the buyer journey.
The commercial case for insurance providers, brokers and partner brands
The Budget’s dates work as a content calendar for publishers and product teams. April 2027 brings the 35p higher mileage rate and the new property income tax rates, with the first Your First Home loans due the same month. The Trading Allowance also rises from £1,000 to £3,000 on 6 April 2027, and sole trader guides that explain the new threshold sit close to public liability cover. Private hire VAT follows in January 2028 and eVED in April 2028.
For insurance providers and brokers, the panel route places products in front of customers who are already comparing cover. For publishers, each affiliate placement carries its own tracking link, with real-time reporting and monthly commission on the quotes and leads that convert. Terms are agreed directly with the partnerships team and vary by route and product line.
A mortgage or property brand with its own customer base can take the co-branded route instead, with Seopa hosting the comparison journey in the brand’s style.
Get started with Seopa
The simplest way to begin is by looking at what you plan to publish or sell ahead of the April 2027 tax changes.
- For insurance providers and brokers: Visit our panel page to see how to add your products to our comparison journeys.
- For publishers and partner brands: Check our affiliate scheme page to see how referrals, tracking links and white-label journeys work.
Speak to the partnerships team and let us know which Budget 2026 audiences you reach and which product lines matter to them. We will recommend the integration route and cover lines that fit your business.
Frequently asked questions
What Insurance Premium Tax rates does Budget 2026 set?
Budget 2026 sets IPT at 12% standard and 20% higher for both 2026-27 and 2027-28, according to Annex A. HMRC’s rates table shows those rates have applied since 1 June 2017.
Do the new business mileage rates change the cover a driver needs?
The Budget does not address insurance law. The mileage rates change the tax relief a driver can claim. Cover depends on how the vehicle is used, and the ABI states that anyone using a car as part of their employment needs business use cover.
Is the £50 million private hire VAT threshold confirmed?
No. The Budget sets 20% VAT on the full fare for larger operators from 2 January 2028, but the size threshold will follow a consultation the government says it will publish shortly. Annual fare turnover of £50 million is the lead option.
Can a partner reach landlords and first-time buyers in Northern Ireland?
Landlords, yes. The new property income tax rates apply in Northern Ireland as well as England and Wales, and CompareNI compares landlord insurance there. Your First Home is England only, so first-time buyer content for Northern Ireland readers should leave the scheme out, though CompareNI compares home insurance for buyers in Northern Ireland.
About this article
Written by
Seopa partnerships team
Insurance comparison partnerships
Fact-checked by
Seopa editorial team
Sources listed below
Last reviewed 29 October 2026Next review When the April 2027 measures take effect on 6 April 2027
Sources (8)
- HM Treasury, “Budget 2026”. www.gov.uk/government/publications/budget-2026-document. Accessed 29 October 2026.
- HM Treasury, “Budget 2026 speech”. www.gov.uk/government/speeches/budget-2026-speech. Accessed 29 October 2026.
- HM Treasury, “Budget 2026: overview of tax legislation and rates (OOTLAR), Annex A: rates and allowances”. www.gov.uk/government/publications/budget-2026-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances. Accessed 29 October 2026.
- HM Treasury, “Everyday fixes to make life easier for millions of Britons”. www.gov.uk/government/news/everyday-fixes-to-make-life-easier-for-millions-of-britons. Accessed 29 October 2026.
- Ministry of Housing, Communities and Local Government, “Your First Home”. www.gov.uk/government/publications/your-first-home/your-first-home. Accessed 29 October 2026.
- HM Revenue and Customs, “Insurance Premium Tax rates”. www.gov.uk/government/publications/rates-and-allowances-insurance-premium-tax/insurance-premium-tax-rates. Accessed 29 October 2026.
- Association of British Insurers, “Motor insurance”. www.abi.org.uk/policy-and-guidance/insurance/personal-insurance/motor-insurance. Accessed 29 October 2026.
- Association of British Insurers, “Home insurance”. www.abi.org.uk/policy-and-guidance/insurance/personal-insurance/home-insurance. Accessed 29 October 2026.
How we checked this article: on 29 October 2026 we compared every date, rate and figure with the Budget 2026 documents, HMRC and the other sources listed above.
This article is general information for insurance providers, publishers and brands. It is not tax or legal advice, and how the measures apply depends on each person's or business's circumstances.