Summary Fact Sheet
The Chancellor delivered the Autumn Budget on 28 October 2026, announcing a number of taxation changes affecting individuals, investors, pension savers and business owners.
The following fact sheet summarises the principal announcements, together with previously announced measures due to take effect over the coming years.
1. Income Tax and Personal Allowances
The standard Personal Allowance remains at £12,570.
For taxpayers in England, Wales and Northern Ireland, the main income tax rates remain at 20%, 40% and 45%, with the higher-rate threshold at £50,270 and additional-rate threshold at £125,140.
Scottish taxpayers continue to have separate rates and bands for employment, pension and other non-savings, non-dividend income.
The freeze on personal allowances and thresholds continues.
2. Taxation of Savings Income
From 6 April 2027, the rates of income tax on savings income will increase by two percentage points across the UK.
Tax band Current rate From April 2027
Basic 20% 24%
Higher 40% 44%
Additional 45% 49%
The Personal Savings Allowance remains at £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and £0 for additional-rate taxpayers.
3. Individual Savings Accounts (ISAs)
The Government has reversed its previously proposed reduction in the Cash ISA limit.
The overall annual ISA subscription allowance remains at £20,000, including Cash ISAs and Stocks and Shares ISAs.
The Junior ISA allowance remains at £9,000.
A new First Time Buyer ISA is planned from April 2029, replacing the Lifetime ISA for new savers. It will offer a 25% Government bonus, subject to qualifying conditions, with a maximum bonus of £20,000.
Existing Lifetime ISA holders will be able to retain their accounts.
4. Pensions and Retirement Savings
There were no further changes announced to the existing pension tax-free lump sum allowances.
The standard pension annual allowance remains at £60,000, subject to the existing tapered annual allowance and Money Purchase Annual Allowance rules.
The standard Lump Sum Allowance remains at £268,275 for individuals without relevant protections.
From 6 April 2027, most unused pension funds and certain pension death benefits will be included within an individual's estate for inheritance tax purposes.
Changes to the treatment of certain pension death benefits were also announced, including the removal of the existing two-year rule from 28 October 2026.
5. State Pension and Taxation
The State Pension triple lock remains in place.
A new pension tax allowance is planned from April 2027, intended to prevent pensioners whose only income is the full new State Pension from becoming liable to income tax solely as a result of State Pension increases.
The allowance will be progressively withdrawn for individuals with additional taxable income.
6. Business Asset Disposal Relief (BADR)
One of the principal announcements affecting business owners is the reduction in the lifetime limit for Business Asset Disposal Relief, previously known as Entrepreneurs' Relief.
From 6 April 2027, the lifetime limit will reduce from £1 million to £500,000 per individual.
The preferential Capital Gains Tax rate remains at 18%.
Before 6 April 2027 From 6 April 2027
Lifetime BADR limit £1,000,000 £500,000
CGT rate on
qualifying gains 18% 18%
Higher standard
CGT rate 24% 24%
For example, assuming a qualifying gain of £1 million, the full BADR allowance is available, and the excess gain is taxable at 24%:
Before change After change
Capital Gains Tax £180,000 £210,000
This represents an additional £30,000 Capital Gains Tax liability per individual.
The lifetime allowance is cumulative, so relief claimed on previous qualifying disposals reduces the amount available for future disposals.
The existing eligibility conditions continue to apply, with transitional provisions for certain disposals and transactions.
7. New Founders' Relief
A new Capital Gains Tax Founders' Relief is proposed from 6 April 2027.
The relief will provide a reduced CGT rate of 10% on qualifying lifetime gains of up to £10 million.
It is intended for qualifying founders and early investors in high-growth, innovative UK companies.
The detailed eligibility conditions are subject to consultation and legislation.
8. Corporation Tax
The main rate of Corporation Tax remains at 25% for companies with profits above £250,000.
The small profits rate remains at 19% for profits of £50,000 or less.
Marginal relief continues to apply between these thresholds, subject to the relevant rules.
9. Dividend Taxation
Previously announced increases to dividend income tax rates are due to take effect from April 2027.
The ordinary and upper dividend rates will increase by two percentage points, while the additional dividend rate remains unchanged.
The annual dividend allowance remains at £500.
10. Inheritance Tax
The standard inheritance tax nil-rate band remains at £325,000.
The residence nil-rate band remains at £175,000, subject to the qualifying conditions and tapering provisions.
The previously announced changes bringing most unused pension funds and certain pension death benefits within the scope of inheritance tax from April 2027 remain in place.
Other previously announced changes affecting business and agricultural property relief should also be considered separately where relevant.
11. Property Income Tax
From 6 April 2027, property income tax rates will increase by two percentage points for taxpayers in England, Wales and Northern Ireland.
Tax band From April 2027
Basic 24%
Higher 44%
Additional 49%
Separate arrangements apply to Scottish taxpayers.
12. Capital Gains Tax
The standard Capital Gains Tax rates remain unchanged.
Tax band CGT rate
Basic 18%
Higher 24%
The annual Capital Gains Tax exempt amount remains at £3,000 per individual.
The reduced 18% rate for qualifying Business Asset Disposal Relief gains continues, subject to the revised lifetime limit from April 2027.
Further Information
The Autumn Budget 2026 introduces a number of changes to the UK taxation system, some of which will take effect immediately, while others are scheduled for future tax years.
The effect of these measures will depend on individual circumstances.
If you have any questions regarding the Budget announcements or how they may affect your financial arrangements, please contact Bell Financial Planning. We will be happy to assist.
Robert Bell FPFS
Chartered Financial Planner
Managing Director
Bell Financial Planning Ltd