Budget 2026: first glance

The headlines so far

• Income tax on savings income and property income rises by 2 percentage points
• The planned £12,000 cap on cash ISAs has been dropped, and a new Starter ISA has been announced to encourage investing
• The lifetime limit for Business Asset Disposal Relief falls from £1 million to £500,000, alongside a new Founder's Relief at 10% on gains up to £10 million
• The National Minimum Wage rises by 3.9%, a pay rise for around 2.3 million workers
• Banks pay an extra 3% bank surcharge for 15 months from January, to fund support with energy bills

What it could mean for you

Savers: if your interest is above your personal savings allowance, more of it will go in tax. Keeping cash and investments inside ISAs matters even more now that the cash ISA cap has been dropped.

Landlords: a higher tax rate on rental income means a higher bill on the same rent. It is a good time to review how your portfolio is held and financed, with us and your accountant.

Business owners planning an exit: the lower Business Asset Disposal Relief limit could mean more tax on a sale. Who qualifies for the new Founder's Relief, and from when, will be in the detail.

Already in the diary

• From 6 April 2027, most unused pension funds are due to count towards your estate for inheritance tax
• Income tax thresholds and the inheritance tax nil-rate bands are frozen until April 2031
• From April 2028, a High Value Council Tax Surcharge is due on homes in England worth £2 million or more
• From 6 April 2028, the earliest age you can usually take your pension rises from 55 to 57

What happens next

Budget measures still have to pass through Parliament in the Finance Bill, and some details, including start dates, are set out in the Budget documents rather than the speech. We will update this page with the full picture.

If you would like to talk through what the Budget means for you, your first meeting is free and without obligation.