RWM Explains: Autumn Budget 2026

This week’s Autumn Budget saw Chancellor John Healey set out the Government’s tax and spending plans for the year ahead. We’ve summarised the announcements most relevant to financial planning, so you can see clearly what has changed and where the changes may affect you.

Top headlines

• Tax on savings income is increasing. Rates will rise to 24% (basic rate), 44% (higher rate) and 49% (additional rate). This is a notable shift and may influence how you structure your savings going forward.
• Business Asset Disposal Relief will fall from £1 million to £500,000, but a new Founders’ Relief will apply a 10% CGT rate on up to £10 million.
• U‑turn on the Cash ISA allowance reduction. The previously announced reduction to £12,000 for people under 65 has been reversed, meaning the current allowance of £20,000 will remain in place.
• Pensioners with total income no higher than the full new State Pension will pay no Income Tax. New ‘Pension Tax Allowance’ (PTA) will be introduced to ensure pensioners do not pay income tax on the State Pension now that payments exceed the personal allowance.

For savers and investors there are several important announcements to digest.

Pensions

• No changes to personal pensions. 
• State Pension triple lock changes confirmed. From April 2030, increases will be based on CPI inflation, 2.5%, or an adjusted earnings‑related mechanism.
• New Pension Tax Allowance (PTA).  Designed to prevent pensioners paying Income Tax on State Pension income now that payments exceed the personal allowance.

Inheritance Tax (IHT)

• Unspent pensions on death will form part of the estate from April 2027. This represents a significant shift in estate planning and may affect how families structure long‑term wealth.

Savings & ISAs

• Tax on savings income increasing. Rates will rise to 24% (basic rate), 44% (higher rate) and 49% (additional rate). This is a notable shift and may influence how saving are held.
• U‑turn on the Cash ISA allowance reduction. The previously announced reduction to £12,000 for people under 65 has been reversed, meaning the current allowance will remain in place.
• New First Time Buyer ISA. Allows £4,000 annual contributions with a 25% Government bonus. Potentially useful for children or family members planning for their first home.

Property‑Related Income Tax

• 4% tax increase. It applies to property‑related income, including rental income and certain property‑linked earnings.

Capital Gains Tax (CGT)

• Business Asset Disposal Relief reduced. The lifetime limit will fall from £1 million to £500,000.
• New ‘Founders’ Relief’. A new relief will cap CGT at 10% on up to £10 million of qualifying gains for founders of certain businesses.

What happens next

If any of the changes affect your finances, we’re happy to discuss your planning needs. Please do get in touch via: and 01932 502757. Or reach out to a member of the team directly.