The Autumn Budget 2026 outlined a number of changes that could affect how individuals,  families and business owners manage their finances in the years ahead.  

While headline rates of Income Tax, National Insurance, VAT and Capital Gains Tax remain  unchanged, changes to savings, property income and business tax reliefs could have  important implications for financial planning.  

With several measures due to take effect from April 2027, we take a closer look at the key  announcements and what they could mean for you.  

1. Savings and ISAs: higher tax rates on savings interest  

One of the key announcements was a further increase in the rates of Income Tax applied to  savings interest outside tax-efficient accounts such as ISAs.  

From 6 April 2027, the rates applicable to taxable savings income across the UK will be:  

· 24% for basic-rate taxpayers  

· 44% for higher-rate taxpayers  

· 49% for additional-rate taxpayers  

The existing Personal Savings Allowance will remain unchanged, meaning eligible  savers can continue to receive a certain amount of interest tax-free.  

The Budget also scrapped the planned cut to £12,000 for cash ISAs, announced last  year, so the full £20,000 annual cash ISA allowance will remain available, with  interest earned within an ISA continuing to be tax-free. A new Starter ISA is also  planned, with details to follow.  

For those holding significant savings outside an ISA, these changes highlight the  importance of reviewing how their money is held and whether available tax-efficient  allowances are being used effectively.  

2. Property income: changes for landlords  

Landlords who own rental properties personally may also be affected by changes  announced in the Budget.

From 6 April 2027, the Income Tax rates on property income in England, Wales and  Northern Ireland will increase to:  

· 24% at the basic rate  

· 44% at the higher rate  

· 49% at the additional rate  

Scotland will set out its own rates on property income.  

For those receiving rental income, higher tax rates could affect the returns they  receive from their property investments.  

It may therefore be worth reviewing rental income alongside other sources of income  and considering how these changes could affect longer-term financial plans.  

3. Selling a business: Business Asset Disposal Relief and Founders’ Relief

Business owners considering selling their business should be aware of changes to Business  Asset Disposal Relief (BADR).  

This relief allows eligible business owners to benefit from a reduced rate of Capital Gains  Tax on qualifying gains when selling their business.  

As announced in last year’s Budget, the lifetime limit on qualifying gains eligible for BADR  will reduce from £1 million to £500,000 for qualifying disposals made on or after 6 April 2027.  

The reduced Capital Gains Tax rate of 18% will continue to apply to gains qualifying for the  relief, but the lower lifetime limit means that less of an eligible individual's total gains may  benefit from it.  

This Budget also announced a consultation on a new Founders’ Relief, which would apply a  10% rate of Capital Gains Tax on up to £10 million of lifetime gains. As this is only at  consultation stage, the details may change.  

For business owners considering a future sale or exit, this makes it particularly important to  understand the potential tax implications.  

Discussing plans with a financial adviser and accountant can help ensure that any decisions  are considered as part of a wider financial strategy.  

4. State Pension and retirement income  

The Budget also introduced measures aimed at supporting pensioners, particularly those  with more modest retirement incomes.  

From 6 April 2027, the full State Pension will be £13,036.

The Government also announced a new Pension Tax Allowance designed to prevent  pensioners whose total income does not exceed the value of the full State Pension from  having to pay Income Tax.  

The allowance will taper for those with income slightly above this level.  

For anyone approaching or already in retirement, understanding how State Pension  payments interact with private pensions and other sources of income remains an important  part of financial planning.  

5. Support for first-time buyers  

The Budget also confirmed new measures intended to help more people take their first step  onto the property ladder.  

The Government announced its Your First Home scheme, expected to launch in early 2027,  which will provide eligible first-time buyers with a 20% government equity loan towards new build properties, with a 2.5% deposit.  

Looking further ahead, a new First Time Buyer ISA is also planned from April 2029,  replacing the Lifetime ISA.  

For parents or grandparents considering helping a family member purchase their first home,  these developments may be worth considering alongside existing savings and gifting  arrangements.  

Other upcoming changes worth keeping in mind  

From 6 April 2027, most unused pension pots will count towards your estate for inheritance  tax. Although this was previously announced and not newly introduced in the Autumn Budget  2026, it remains an important consideration for those reviewing their retirement and estate  planning arrangements.  

Income Tax and inheritance tax thresholds are also set to remain frozen until April 2031. As  your income rises, more of it may be taxed at a higher rate.  

Looking ahead: is it time to review your financial plans?  

The Autumn Budget 2026 highlights how changes to taxation, savings and retirement  income can affect financial planning over time.  

Whether you're building your savings, approaching retirement, considering a business sale  or planning for your family's future, understanding how these developments may affect your  circumstances is important.  

A short review now gives you time to plan ahead.  

Your Sterling Wealth adviser can review your pension, savings and estate in light of the  latest Budget and upcoming tax changes, helping you understand what they could mean for  you.  

Book a review at sterlingwealth.co.uk

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This is a summary of the Autumn Budget 2026 as announced and is for general information only. It is not  personal advice. Figures may change as the Finance Bill passes through Parliament, and some measures are  still under consultation. Tax treatment depends on your individual circumstances and may change in future. The  value of investments can go down as well as up, and you may get back less than you invested. The Financial  Conduct Authority does not regulate tax advice. Sterling Wealth Limited is an Appointed Representative of New  Leaf Distribution Ltd, who are authorised and regulated by the Financial Conduct Authority – Number 460421.  

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