The Autumn Budget 2026

Yesterday's Budget set out the Government’s latest plans for the economy, public finances and the measures likely to shape household and business finances in the months ahead. In his first Budget as Chancellor of the Exchequer, John Healey announced the following personal finance updates.

Pensions

The Chancellor announced a new tax-free allowance linked to the full new State Pension, worth £13,036.40 from April 2027. It will ensure that pensioners who earn up to this amount will not pay income tax.

As previously announced, from 2030 the government will adjust the triple-lock which currently increases the state pension by the higher of inflation, wages or 2.5%.

Capital Gains Tax

The threshold for Business Asset Disposal Relief (previously known as Entrepreneur’s Relief) is reducing from £1,000,000 to £500,000 in April 2027. This is the lifetime amount on which qualifying business owners can pay a reduced rate of Capital Gains Tax when selling a business and the Chancellor suggested the change will impact one in four claimants.

Healey also announced a new Capital Gains Tax relief for founders of and significant early investors in high-growth, innovative UK companies. A “Founder’s Relief” rate of 10% CGT will apply on qualifying disposals of shares, up to a lifetime limit of £10 million of gains per individual.

Income Tax

From April 2027, income tax rates applied to property and savings income will increase by 2%. The change does not apply to income from dividends and employment. This is on top of a planned increase of 2% announced by the previous Chancellor Rachel Reeves last year. The combined increases will bring tax rates up to 24%, 44% and 49%, depending on which bracket the income falls into.

Changes to tax rates savings income will apply nationwide, while property income falls within Scotland’s devolved income tax powers.

Individual Savings Accounts (ISAs)

The amount that can be paid into Cash ISAs will remain at £20,000. This is a change to previous plans to reduce the limit to £12,000 for under 65s. The £20,000 allowance will remain in place for savers of all ages.

Healey also introduced development of a new “Starter ISA”, designed to reward first-time investors.

The Lifetime ISA, launched in April 2017, will be replaced by a First-Time Buyer ISA. Healey also introduced an equity loan scheme to help people onto the housing ladder.

Looking Forward

While the effect of yesterday's Budget on each household, business or financial plan will depend on individual circumstances, the measures announced may merit a review of existing budgets, goals and assumptions.

As the detail becomes clearer, the next step will be to distinguish between immediate changes and longer-term implications, and to consider whether any aspect of your financial plan should be revisited.

This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action.