Autumn Budget 2026: Key considerations for your financial plans

The Chancellor of the Exchequer, John Healy, delivered the 2026 Budget yesterday (Wednesday 28th October 2026) against a backdrop of turbulent geopolitics abroad and a challenging macroeconomic environment at home. While Prime Minister Andy Burnham’s government has left the headline rates of income tax, national insurance and VAT unchanged, there were significant changes elsewhere, particularly for individuals with substantial savings, investments, property and business interests.

Review don’t react is very much the immediate feeling amongst wealth management clients. The first Budget under this refreshed Labour administration should prompt wealth management clients to prudently assess their investments, pensions, retirement plans, estate planning strategies and business interests as the UK tax landscape continues to evolve.

Here are W1M’s key takeaways from the Budget:

Savings income will be taxed more heavily

One of the clearest changes for wealthier individuals concerns savings income. From 6 April 2027, the rates applying to taxable savings income will increase to: 24% at the basic rate; 44% at the higher rate and 49% at the additional rate. This is particularly relevant to clients who hold significant amounts in cash deposits outside ISAs or other tax-efficient structures.

Property income faces higher tax rates

Landlords and clients receiving taxable income from property will also be affected. From 6 April 2027, the new property income tax rates in England, Wales and Northern Ireland are scheduled to be 24%, 44% and 49%, depending upon the taxpayer's applicable band. The Government has also provided the devolved governments of Scotland and Wales with powers in relation to property income rates. For clients with investment properties, this provides another reason to consider the role property plays within their overall balance sheet.

Cash ISA limit remains at £20,000

There was better news for cash savers. The Government has reversed the previously planned reduction in the cash ISA limit, meaning that it will remain at £20,000 from 6 April 2027.

Business Asset Disposal Relief restricted

There is an important change for business owners. From April 2027, the lifetime limit on gains qualifying for Business Asset Disposal Relief (BADR) will reduce from £1 million to £500,000. The Government says three-quarters of BADR claimants will still receive relief on their entire qualifying gain. For entrepreneurs considering an eventual business sale, this makes the timing and structuring of disposals increasingly important.

New CGT relief for qualifying founders

Alongside the BADR reduction, the Government has announced a new Capital Gains Tax Founders' Relief from 6 April 2027. It will offer a 10% CGT rate on up to £10 million of lifetime qualifying gains for eligible founders of high-growth innovative companies. This is potentially significant for entrepreneurial clients, although eligibility will clearly matter.

Changes to pension death benefits

The Budget also makes some useful technical changes to pension death benefits. Most notably, the Government is removing the existing two-year rule which could cause normally tax-free pension or lump-sum death benefits to become taxable solely because they were paid more than two years after the scheme administrator knew, or should reasonably have known, of the member's death. The change applies to payments made from 28 October 2026.

High-value homes and the new council tax surcharge

Property wealth is another area requiring attention. The Government is proceeding with the High Value Council Tax Surcharge, an additional charge on residential properties valued at £2 million or more, taking effect from April 2028.

Inheritance tax rules around trusts tightened

The Budget additionally contains an inheritance tax measure relating to liabilities and trusts. The legislation will extend restrictions and anti-avoidance rules around certain liabilities so that liabilities funded using value originating from a beneficiary's own estate cannot inappropriately reduce inheritance tax charges. This applies to deaths and other relevant chargeable events from 28 October 2026.

First-time buyers and the next generation

There are also changes which may interest clients thinking about helping children or grandchildren onto the property ladder. A new First Time Buyer ISA is planned from April 2029. It will allow contributions of up to £4,000 per year with a 25% government bonus, with the bonus available towards a qualifying first home purchase up to £450,000. Unlike the Lifetime ISA, the new account is intended to have no upper age restriction.

There is also an immediate Lifetime ISA change. From 29 October 2026, where a qualifying first-time buyer uses their Lifetime ISA towards a property costing more than the current £450,000 cap, the withdrawal charge will reduce from 25% to 20%.

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The 2026 Budget announcement: What it means for you | W1M Wealth & Investment Management.