Autumn Budget 2026 – What the key announcements could mean for you
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The Autumn Budget took place on 28 October 2026. Here is our take on the key announcements and what they could mean for your financial plans.
This is a selective overview, checked as at 10/11/2026. Some measures remain subject to consultation or legislation and may change.
BUDGET AT A GLANCE
- Income Tax thresholds remain frozen until April 2031, potentially bringing more income into higher tax bands.
- The £20,000 ISA allowance is retained and the proposed Cash ISA reduction will not proceed.
- Savings and property income rates are proposed to rise to 24%, 44% and 49% from 6 April 2027, a further two percentage points above the rates previously set for that date. Savings rates apply UK-wide.
- Business owners face important changes to Business Asset Disposal Relief, alongside a new and more narrowly targeted Founders’ Relief.
- Pension tax relief and tax-free cash were unchanged by the Budget.
1. Income Tax: thresholds remain frozen
Income Tax rates on earnings remain unchanged, but thresholds will stay frozen until April 2031. As incomes rise, more people may pay tax or move into a higher band, an effect often called fiscal drag.
What could this mean for you?
The freeze may gradually increase the proportion of income subject to tax. Pension contributions and the effective use of allowances may be relevant as part of a wider review.
2. ISAs and savings
The £20,000 annual ISA allowance has been retained and the proposed reduction in the Cash ISA allowance for under-65s will not proceed. From 6 April 2027, however, savings income tax rates are due to rise by two percentage points to 24%, 44% and 49%, depending on the band into which the income falls. The Personal Savings Allowance remains £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers, with no allowance for additional-rate taxpayers.
What could this mean for you?
Those holding significant cash outside ISAs may pay more tax on their interest. The appropriate balance between accessible cash and longer-term investments will depend on individual objectives, timescales and risk.
3. Investments and Capital Gains Tax
The wider Capital Gains Tax increases anticipated before the Budget were not introduced. The main rates remain 18% and 24%, the annual exempt amount remains £3,000 and the Dividend Allowance remains £500.
What could this mean for you?
For investments outside tax-efficient wrappers, consider the tax position before selling. Timing and allowances matter, but tax should not be viewed separately from investment objectives and risk.
4. Business owners: BADR and Founders’ Relief
From 6 April 2027, the lifetime limit for Business Asset Disposal Relief is due to fall from £1 million to £500,000. This may be material for owners planning a future business sale.
The Government also announced Founders’ Relief, proposing a 10% Capital Gains Tax rate on up to £10 million of qualifying lifetime gains for eligible founders and early investors in certain high-growth, innovative companies. It is intended to apply to qualifying disposals from 6 April 2027.
Founders’ Relief is not a general replacement for BADR. Its proposed conditions are considerably narrower and the final design remains subject to technical consultation and legislation.
What could this mean for you?
Business owners considering a sale or succession should establish which relief, if any, could apply. Specialist tax advice should be taken before making or accelerating a disposal decision.
5. Pensions and retirement planning
The Budget did not announce changes to pension contribution tax relief or tax-free pension cash. The State Pension triple lock is due to remain until April 2029, with a change to the increase mechanism intended from April 2030. The Government also announced the removal of the two-year rule for otherwise tax-free pension death benefits, applying to payments made on or after 28 October 2026 through Finance Bill 2026/27. Previously, benefits following death before age 75 could become taxable if the scheme administrator did not pay them, or take the required action, within two years of knowing of the death (or when they could reasonably have been expected to know, if earlier). A delay beyond that deadline will no longer, by itself, trigger tax. Other conditions, including the available lump sum and death benefit allowance for lump sums, still apply.
What could this mean for you?
For most defined contribution pensions, benefits following death before age 75 are generally free of Income Tax, subject to the relevant conditions and allowances. Where the pension owner dies aged 75 or over, payments to individual beneficiaries are generally taxed at their own marginal Income Tax rate. It is the pension owner’s age at death, not the beneficiary’s age, that matters. Removing the two-year rule should help families facing delays in settling death benefits, but does not make every inherited pension tax-free. Retirement decisions should still consider how the State Pension, private pensions, savings and investments work together.
6. Property income and landlords
From 6 April 2027, property income tax rates are due to rise by two percentage points to 24%, 44% and 49%, depending on the band into which the income falls.
What could this mean for you?
Landlords may face higher tax on property profits. Any decision to retain, sell or restructure property should take account of personal circumstances, costs, risks and tax consequences.
What should you do now?
Not every Budget announcement requires immediate action. The important point is to understand whether the changes affect your circumstances and whether your existing financial plans remain appropriate. Making effective use of allowances, reviewing cash and investments, and keeping retirement, business and estate plans under review remain central to sound financial planning.
How we can help
We will continue to monitor these measures as further details emerge. If an announcement raises questions about your circumstances, please contact us to discuss whether a review of your existing arrangements would be appropriate.
Important information
This article is for general information only and does not constitute personal financial, investment or tax advice. The impact of the measures described will depend on individual circumstances. Some measures remain subject to consultation, legislation and further guidance and may change before implementation. Tax treatment depends on individual circumstances and may change in the future. The value of investments and any income from them can fall as well as rise, and you may get back less than you invest. Please seek appropriate professional advice before taking action.
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