On 28 October 2026, Chancellor of the Exchequer John Healey delivered the UK Autumn Budget.
You are likely aware of the pressure the UK government faces with public finance, so we won’t dwell on it.
Instead, in this Budget overview, we’ll cut through the noise to highlight the key announcements worth being aware of, explain who they may affect, and explore what they could mean for your financial plans, from pensions and investments to tax and retirement.
Entrepreneurs and some small businesses
The Budget offered mixed fortunes for business owners, but some entrepreneurs stand to benefit.
A new Founders’ Relief will be introduced from April 2027, offering qualifying founders of high-growth, innovative companies a 10% Capital Gains Tax (CGT) rate on up to £10m of lifetime gains. For smaller-scale entrepreneurs, the Income Tax Trading Allowance is also increasing from £1,000 to £3,000 from April 2027.
Some high-street businesses in England will benefit too. Small Business Rates Relief thresholds are increasing for qualifying retail, hospitality and leisure properties, which the government estimates will take around 70,000 more businesses out of business rates altogether. Qualifying businesses will also have business-rate increases capped at inflation for two years.
Business owners planning to sell
There is a potentially significant change for business owners considering an exit.
The lifetime limit for gains eligible for Business Asset Disposal Relief (BADR) will fall from £1m to £500,000 for disposals made from 6 April 2027. BADR currently offers an 18% CGT rate on qualifying disposals.
The government says three-quarters of BADR claimants should still receive the relief on their entire gain. But owners expecting larger gains may want to understand how the new limit could affect them well before making decisions over a future sale or succession.
Landlords
From 6 April 2027, Income Tax rates on property income will increase by two percentage points to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers in England, Wales and Northern Ireland. These increases come on top of the two-percentage-point rises announced at the November 2025 budget.
For affected landlords, the change could have a noticeable effect on the return they receive from a property, particularly when considered alongside their other costs and tax liabilities.
ISA savers
Cash savers received some welcome news. The government has dropped the previously planned reduction in the cash ISA allowance, meaning the annual limit will remain at £20,000.
That could become particularly valuable in the context of another of Healey's announcements: higher rates of Income Tax on savings income from April 2027 (see the Savers with taxable interest section below). Making appropriate use of ISA allowances could become increasingly important for people with savings outside tax-efficient accounts.
Savers with taxable interest
While ISA savers have reason to be pleased, people holding substantial cash savings outside tax-efficient accounts could face a bigger bill.
From April 2027, the rates applied to taxable savings income will rise to 24%, 44% and 49% across the UK. The Personal Savings Allowance, Starting Rate for Savings and ISAs remain available, so whether you are affected will depend on your wider income and how your savings are held.
It makes the distinction between taxable savings and money held within an ISA increasingly important when thinking about how your savings are structured.
Future pensioners
The State Pension Triple Lock survives for the rest of this Parliament, but its longer-term future is changing.
Until April 2029, the State Pension will continue rising each year by the highest of earnings growth, inflation or 2.5%.
From April 2030, the formula will be adjusted so that the State Pension will rise by the highest of 2.5%, inflation or the increase needed to maintain its value relative to earnings at the level reached in April 2029.
In practice, that removes the existing mechanism that can cause the State Pension to rise progressively higher relative to average earnings. The government estimates the change will reduce annual State Pension spending by £15bn by the late 2030s.
For people some way from retirement, it is another reminder that the State Pension is best considered alongside workplace and private pensions, savings and investments when planning for later life.
Pensioners on lower income
A new Pension Tax Allowance will be introduced from April 2027. Its aim is to prevent pensioners whose total income is no higher than the full new State Pension from paying small amounts of Income Tax simply because increases in the State Pension take them above the Personal Allowance. The allowance will taper for people with income just above this level and is currently due to apply until April 2030.
There is also a change affecting pension death benefits. The existing two-year rule is being removed, meaning beneficiaries will no longer become liable for tax solely because qualifying pension or lump-sum death benefits take more than two years to be paid. The change applies to payments made on or after 28 October 2026.
First-time buyers
People trying to get onto the housing ladder are set to receive significant support.
The new £4.7bn Your First Home scheme will offer eligible first-time buyers in England a government equity loan of up to 20%, with a minimum deposit of 2.5% and no interest charged on the equity loan for the first five years. The government expects the scheme to support around 70,000 households, with the first loans due to be issued from April 2027. Income and property-price limits will apply.
There are also changes for people saving towards their first home. As of 29 October 2026, Lifetime ISA holders buying a property above the existing £450,000 property-price cap will face a 20% withdrawal charge rather than 25%.
From April 2029, a new First Time Buyer ISA will offer a 25% government bonus on contributions of up to £4,000 a year, with no upper age restriction.
Lifetime ISA savers using it for retirement
The new First Time Buyer ISA from 2029 is for home purchases only, so it will not offer a retirement option. Existing LISAs can still be used for retirement, and new ones can be opened until the new ISA launches. If you use or plan to use a LISA for retirement, it’s worth reviewing how it fits alongside your pension.
What’s next?
Many of these measures will not take effect immediately, and some remain subject to legislation, consultation or further detail. But changes arriving from April 2027 make this Budget a useful point to take stock.
That might mean looking at where your savings are held, how much taxable income you receive from savings or property, whether your pension and retirement plans remain on track, or how the changes could affect a future business sale. The important thing is to consider individual Budget announcements as part of your wider financial plans, rather than in isolation.
If you’d like to know more about the measures announced in the Budget and how they might affect your finances, please get in touch with your adviser.
The full Budget 2026 report can be found here.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
This content is for information purposes and should not be treated as financial advice. We would always recommend speaking to a professional before making decisions regarding your wealth.
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