The Autumn Budget 2026 contained a wide range of announcements affecting pensions, savings, tax, business owners and household finances.

There were no increases to the headline rates of Income Tax, National Insurance or VAT. However, several targeted measures could have important financial planning consequences, including changes to the taxation of property and savings income, Business Asset Disposal Relief, ISAs and the treatment of unused pension funds and death benefits for Inheritance Tax purposes.

Below, we have focused on the measures most likely to be relevant to you, rather than attempting to cover every announcement in the Budget.

Many headline tax rates are unchanged

No broad-based increases to the main rates of Income Tax, National Insurance or VAT were announced. However, the Budget includes targeted tax changes affecting property and savings income, business disposals and estate planning.

Existing frozen thresholds, including the £12,570 Personal Allowance, Income Tax thresholds and the Inheritance Tax nil-rate bands, remain in place until 2031.

The previously announced plan to bring most unused pension funds and pension death benefits within the scope of Inheritance Tax is due to proceed from 6 April 2027.

New ISA announcements, including the reversal of the Cash ISA limit reduction

• The planned reduction in the amount under-65s could place into Cash ISAs has been reversed. The Cash ISA limit will remain £20,000.
• A new First-Time Buyer ISA is planned for new savers from April 2029. It would allow contributions of up to £4,000 a year and provide a 25% government bonus on a qualifying first-home purchase, subject to a £450,000 property limit.
• Existing Lifetime ISA holders are expected to be able to continue contributing.
• The government plans to reduce the withdrawal charge from 25% to 20% where a first home costs more than £450,000 but the other qualifying conditions are met. Other unauthorised withdrawals would continue to attract the 25% charge.
• The government will work with the investment industry to explore a new incentive for people investing in a Stocks and Shares ISA for the first time. This is not yet an available product.

Income Tax changes for landlords and savers

From 6 April 2027, the tax rates applying to property income and savings income will increase by 2 percentage points at the basic, higher and additional rates.

This could affect landlords and savers whose interest exceeds their available allowances. The Personal Savings Allowance remains £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and £0 for additional-rate taxpayers. Interest held within an ISA remains sheltered from Income Tax.

The practical impact will depend on your wider income and the allowances available to you. Holding cash outside an ISA may still be appropriate, particularly for emergency reserves and known short-term spending, but the tax position should continue to form part of the decision.

Important changes for those starting, growing and selling their businesses

New business owners and newly self-employed people

• A Young Entrepreneurs Allowance will be piloted, providing successful applicants with help towards living costs during their first year in business.
• The Trading Allowance will rise from £1,000 to £3,000 from 6 April 2027 for qualifying trading and any associated miscellaneous income.

Those growing their business

• From April 2029, Self Assessment taxpayers who make payments on account will move to smaller, more regular payments.
• From 1 April 2027, qualifying retail, hospitality and leisure properties in England with a rateable value up to £18,000 will qualify for full Small Business Rates Relief, with tapered relief extending to £21,000.
• The 55p-per-mile rate for the first 10,000 qualifying business miles in an employee’s or self-employed person’s own car or van will become permanent. From 6 April 2027, the rate above 10,000 miles will rise from 25p to 35p.

For those disposing of business assets, the Budget presented a mixed picture

From 6 April 2027, a new Capital Gains Tax Founders’ Relief will offer a 10% rate on up to £10 million of qualifying lifetime gains. It is intended for qualifying founders of high-growth, innovative UK companies. Detailed eligibility rules are still being developed.

The lifetime limit for gains qualifying for Business Asset Disposal Relief will fall from £1 million to £500,000 from 6 April 2027. The government estimates that three-quarters of claimants will still receive relief on their entire gain.

Business owners considering a future sale, succession or management buyout may want to review the potential tax position well before a transaction takes place. Decisions should be based on the commercial merits of the deal, not the tax deadline alone.

The chancellor reaffirmed previously announced State Pension changes

The triple lock will be reformed from 2030

The government confirmed that the triple lock will remain for the duration of this Parliament. From April 2030, it is intended to be adjusted so that the State Pension rises by the highest of inflation, 2.5%, or the amount needed to maintain its value relative to earnings.

A new Pension Tax Allowance will protect some pensioners

The full new State Pension is expected to rise above the £12,570 Personal Allowance. To prevent pensioners whose income is no higher than the full new State Pension from being brought into Income Tax solely because of the uprating, the government will introduce a Pension Tax Allowance from 6 April 2027 until 5 April 2030.

The detailed position may still depend on an individual’s other income. Pensioners with private pensions, employment income, savings interest or rental income should not assume that the new allowance removes their wider tax liability.

More help for first-time buyers

The Your First Home scheme is intended to help eligible first-time buyers purchase qualifying new-build homes in England. It will offer a government equity loan worth 20% of the purchase price, with buyers needing a deposit of at least 2.5%. The loan will be interest-free for five years, with income limits and local property price caps applying.

Further support with household energy bills

VAT reduction on energy costs

The temporary reduction in VAT on domestic electricity from 5% to 0% will continue until 1 July 2027. The government expects the extension to reduce the April 2027 Ofgem price cap by around £50.

Household Energy Payments

Households in council tax bands A to D in England will receive a £100 Household Energy Payment from January 2027. The devolved governments will receive funding to provide similar support.

Removing standing charges on gas bills

The government plans to remove gas standing charges from domestic bills in Great Britain. The costs will move into unit rates, so the change will not produce the same saving for every household.

An extension to the fuel duty cut

The 5p fuel-duty cut and freeze will continue until 1 July 2027.

An increase to the National Minimum Wage and National Living Wage

The National Living Wage and National Minimum Wage rates will increase by 3.9% from April 2027. The National Living Wage will rise to £13.21 an hour, while the rate for 18- to 20-year-olds will rise to £11.27 an hour.

GDP, national debt and inflation

The Office for Budget Responsibility forecasts GDP growth of 1.2% in 2026, 1.0% in 2027 and 1.6% in 2028. Higher borrowing costs are expected to leave the government spending an average of £14 billion more a year on debt interest than forecast in March 2026.

Forecasts can change and should not be treated as a guide to short-term investment decisions. A well-diversified financial plan should be built around your objectives, time horizon and capacity for risk rather than a single Budget or economic forecast.

Please note

All information is from the Budget documents on this page.

The content of this Autumn Budget summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice. 

While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.