Autumn Budget 2026: What it means for your money.
By Scott Millar, Chartered Financial Planner, Finova Money
The Autumn Budget has brought some important changes, particularly for business owners, savers and those planning how to pass wealth to the next generation.
While there were no sweeping changes to income tax or pension contribution allowances, several announcements could affect how you save, invest and plan for the future.
As always, the headlines only tell part of the story. What matters is understanding which changes affect you, and whether your financial plan needs to adapt. We've picked out the announcements we believe matter most, and importantly, what they could mean for you.
Key dates:
28th October 2026:
Budget Day
Budget announced
Lifetime ISA withdrawal charge cut from 25% to 20% for qualifying homes above £450,000
£20,000 ISA allowance retained, including for cash
April 2027:
Most changes land
Tax on savings interest and rental income rises to 24% / 44% / 49%
New Founders’ Relief: 10% CGT on up to £10m of lifetime gains
BADR lifetime limit falls from £1m to £500,000
Most unused pensions expected to become subject to inheritance tax
April 2029:
New ISA for buyers
First Time Buyer ISA replaces the Lifetime ISA for new savers
Existing Lifetime ISA holders can keep using their accounts
While there were no sweeping changes to income tax or pension contribution allowances, several announcements could affect how you save, invest and plan for the future.
As always, the headlines only tell part of the story. What matters is understanding which changes affect you, and whether your financial plan needs to adapt. We’ve picked out the announcements we believe matter most and what they could mean for you.
Which changes affect you?
Expand each section below for more information.
01 Income tax
No major changes but frozen thresholds still matter.
The main rates of income tax remain unchanged at 20%, 40% and 45% for England, Wales and Northern Ireland.
However, with income tax thresholds remaining frozen, pay rises and increases in other income could mean more of your earnings are subject to higher rates of tax.
What this means for you:
Even without headline tax increases, you could find yourself paying more tax over time. Making use of pension contributions, tax allowances and other available planning opportunities remains important.
02 Savings & investments
Higher taxes on interest and rental income.
From April 2027, income tax rates on savings interest and rental income will rise to:
Basic rate: 24%
Higher rate: 44%
Additional rate: 49%
For anyone holding significant cash savings or rental properties outside tax-efficient arrangements, this could mean more of their income being lost to tax.
The Government has also reversed its planned reduction to the Cash ISA allowance.
The annual ISA allowance remains £20,000, including for cash savings.
What this means for you:
It's worth reviewing how much cash you hold, where it's held and what you need it for.
Cash has an important role in financial planning, but holding more than you need over the long term can mean losing purchasing power to inflation and paying unnecessary tax.
For investments outside ISAs and pensions, using available allowances and considering the most appropriate investment arrangements could become increasingly valuable.
03 Business owners
Significant changes to tax relief when selling a business.
One of the more interesting announcements is the introduction of a new Founders' Relief.
From April 2027, qualifying founders and significant early investors in high-growth, innovative UK companies could benefit from a 10% Capital Gains Tax rate on up to £10 million of lifetime gains.
The detailed eligibility criteria are still being finalised.
At the same time, the lifetime limit for Business Asset Disposal Relief (BADR) will reduce from £1 million to £500,000 from April 2027. The qualifying tax rate remains 18%.
What this means for you:
If you own a business and are considering selling it in the coming years, these changes could have a significant impact on the tax you pay.
However, not every business owner will qualify for the new relief, and the right approach will depend on your business, ownership structure and future plans.
It's important to understand your options well before a potential sale, rather than waiting until a transaction is underway.
04 Pensions
Still an important part of financial planning.
Despite speculation before the Budget, there were no new reductions to pension contribution allowances, pension tax relief or the amount of tax-free cash available.
Pensions therefore remain an important way to save for retirement, particularly when considering the tax relief available on contributions and the ability for investments to grow without UK income tax or Capital Gains Tax within the pension.
The Government also announced additional tax protection for people whose income is at or around the full new State Pension.
What this means for you:
The Budget hasn't fundamentally changed the benefits of saving into a pension.
The more important question remains how much you should be saving, when you expect to need the money and how your pensions fit alongside your other assets.
05 Inheritance tax
A reminder to review how you pass on wealth.
Although not a new announcement in this Budget, previously announced changes mean that most unused pension funds and pension death benefits are expected to become subject to inheritance tax from April 2027.
Historically, many people have chosen to preserve their pensions for as long as possible because of their favourable inheritance tax treatment.
That approach may no longer be appropriate for everyone.
What this means for you:
The order in which you draw on pensions, ISAs, other investments and savings could become increasingly important.
For some families, it may make sense to use pension funds earlier. For others, preserving them may still be appropriate.
Gifting, trusts and other estate planning arrangements may also deserve consideration, but the right approach will depend on your circumstances and who you intend to leave your wealth to.
06 First-time buyers
Changes to the Lifetime ISA.
The Government has announced plans to introduce a new First Time Buyer ISA from April 2029, replacing the Lifetime ISA for new savers.
Existing Lifetime ISA holders will be able to continue using their accounts.
There is also an immediate change to the withdrawal charge for first-time buyers purchasing a qualifying property above the current £450,000 limit, reducing the charge from 25% to 20%.
What this means for you:
If you're saving for your first home, it's worth reviewing whether your current savings arrangements remain appropriate.
For those using a Lifetime ISA as part of their retirement savings, the existing rules and benefits remain relevant.
07 What didn’t change
Sometimes what doesn’t happen matters just as much.
Despite speculation ahead of the Budget:
Capital Gains Tax rates were not aligned with income tax rates.
The Capital Gains Tax uplift on death was not removed.
There were no new reductions to pension tax-free cash or contribution allowances.
The £20,000 ISA allowance was retained.
No major overhaul of Stamp Duty was announced.
This provides some continuity for existing financial plans, although previously announced tax changes are still coming into effect
So, what happens next?
Our view is that this Budget reinforces something we've always believed: financial planning is about making good decisions over time, not reacting to every headline.
For some people, the changes announced will have very little impact.
For others, particularly business owners approaching a sale, people with significant investments outside tax-efficient accounts, and families thinking about inheritance tax, there may be important planning opportunities.
For clients we work with on an ongoing basis, we'll consider the relevant changes as part of your financial planning. Where something requires attention before your next review, we'll discuss it with you.
There's no need to rush into decisions simply because another Budget has been announced.
The important thing is making sure your money continues to support the life you want to live.
Important information. This article provides general information based on the Autumn Budget announcements of 28 October 2026. Some proposals remain subject to legislation and further consultation. Tax treatment depends on individual circumstances and may change. Nothing in this article constitutes a personal recommendation.