Autumn Budget 2026: what could it mean for your financial plans? 

From retirement income to buying your first home, we explore the announcements that could affect you and your family. 

A Budget can bring plenty of headlines. But the question that matters most is often much closer to home: what could the changes mean for you? 

On Wednesday 28 October 2026, Chancellor John Healey delivered the Autumn Budget, setting out the Government’s latest tax and spending plans. For those planning retirement, building savings, supporting family members or preparing to sell a business, several announcements could make a difference. 

What could the Budget mean for your retirement income? 

A new Pension Tax Allowance 

From 6 April 2027 to 5 April 2030, the Pension Tax Allowance will provide an automatic tax deduction for people over State Pension age whose total income is no higher than the full new State Pension. For income just above that level, the allowance will gradually reduce. 

Your total income, not just your State Pension, will determine whether you benefit. If your income is limited to the full new State Pension, the measure is intended to prevent you from paying Income Tax on it. Income over the State Pension will be subject to a taper.  

The State Pension triple lock will change from 2030 

Through to April 2029, the State Pension will continue to rise each year by the highest of inflation, earnings growth or 2.5%. From April 2030, the adjusted triple lock will use the highest of inflation, 2.5%, or the amount needed to maintain its value relative to earnings at the level reached in April 2029. 

In some years, your State Pension could rise by less than it would under the current triple lock. Your State Pension will still increase, but the calculation will change. The precise effect will depend on inflation, earnings and the detailed rules. 

If you are planning a long retirement, this is a reminder to review the assumptions behind your plan. How much will you rely on the State Pension, and could your other income sources help if future increases are smaller than expected? 

Lump sum death benefits: the two-year rule is removed 

Under current legislation, where someone dies before age 75 with pension savings they have not yet accessed, pension death benefits must generally be paid within two years to remain tax-free. From 28 October 2026, this two-year rule will be removed. Benefits will no longer become taxable simply because they are paid after two years. 

For families dealing with a bereavement, this could bring some reassurance and remove a tax concern where payment takes longer than expected. A delay beyond two years will no longer, by itself, cause these benefits to become taxable. Other conditions affecting their tax treatment will still need to be considered. 

This is separate from the previously announced changes bringing most unused pension funds and lump sum death benefits into the scope of Inheritance Tax from April 2027, explained later in this article. Removing the two-year rule does not mean pension death benefits will be exempt from Inheritance Tax. 

Could your savings become less tax-efficient? 

The Cash ISA allowance reduction has been scrapped 

The planned reduction in the annual Cash ISA contribution limit for those under 65 will not go ahead. It had been due to fall from £20,000 to £12,000 from April 2027. You will therefore still be able to use the full £20,000 annual ISA allowance for Cash ISA contributions, subject to subscriptions to other types of ISA. 

Keeping the allowance gives you more flexibility to hold savings in a tax-efficient account. This could be particularly relevant if you are building a cash reserve or saving for a purchase in the near future. 

However, an unchanged allowance does not mean cash is the right home for all your savings. The balance between cash and investments should reflect when you need the money, your attitude to risk and the effect of inflation on its spending power. 

Higher tax rates on savings income 

Following a previously announced two percentage point increase, the Government has announced a further two percentage point rise. From 6 April 2027, the savings basic, higher and additional rates will be 24%, 44% and 49% respectively. 

The rates will also apply to chargeable event gains from investment bonds, which are treated as savings income. The rate applying to discretionary trusts will be 49%. 

The interest rate on your savings tells only part of the story: what matters is how much you keep after tax. If you receive taxable interest outside an ISA, you could retain less of it under the higher rates. The impact will depend on your income, the interest you receive and any allowances available to you. 

If you hold an investment bond, the timing and tax treatment of withdrawals may also become more significant. A higher headline rate does not mean every withdrawal is taxed at that rate: the bond’s rules and your circumstances matter. Review the position before making changes, rather than acting on the tax rate alone. 

What could change for landlords and business owners? 

Higher tax rates on property income 

Previously announced property Income Tax rates of 20%, 40% and 45% will rise by a further two percentage points. From 6 April 2027, the basic, higher and additional rates will be 22%, 42% and 47%. These rates will apply across England, Wales and Northern Ireland. 

If you receive taxable rental income, the increase could reduce the amount available to spend, save or reinvest. This may be especially relevant if rental income helps fund your retirement. 

It is worth looking beyond the rent you receive and reviewing the income left after costs and tax. How does your property fit alongside your pensions, savings and other investments? A change in tax rates is a reason to revisit the plan, not necessarily a reason to sell. 

A lower lifetime limit for Business Asset Disposal Relief 

From April 2027, the lifetime limit for capital gains eligible for Business Asset Disposal Relief (BADR) will reduce from £1 million to £500,000. 

If you are considering selling a qualifying business, fewer gains may benefit from the relief. This could affect the proceeds available to support retirement, a new venture or gifts to family. 

The lifetime limit is not a fresh allowance for each sale, so any relief you have already used matters. Before bringing forward or delaying a transaction, consider eligibility, the tax position and your wider commercial goals with your financial planner and tax advisers. 

Could the Budget help you or your family buy a first home? 

A new “Your First Home” scheme 

Due to begin in April 2027, “Your First Home” will offer a 20% equity loan for eligible first-time buyers purchasing new-build properties in England. You could put down a deposit of between 2.5% and 15%, and you won’t pay interest on the equity loan for the first five years. After that, interest will increase gradually. 

A household income cap will apply: £110,000 outside London and £140,000 in London. 

The scheme could help some buyers purchase a home with a smaller deposit. It may also change the conversation for parents or grandparents who are considering helping a family member onto the property ladder. 

But an equity loan is not a gift, and an interest – free period does not remove the need to plan for future costs. Buyers will need to understand the repayment terms, mortgage affordability and what happens when interest starts. Eligibility and the detailed scheme rules should be checked before relying on this support. 

A new First Time Buyer ISA from April 2029 

The new First Time Buyer ISA will allow contributions of up to £4,000 a year, with a 25% Government bonus. The bonus will be paid on the account balance when funds are withdrawn for a qualifying first-home purchase costing up to £450,000, avoiding the need for a withdrawal charge. 

If a first home is a longer-term goal, the new account could become another way to build a deposit. However, it will not be available until April 2029, and the purchase price cap may affect whether it suits the area where you hope to buy. 

Keep your likely buying date and target property price in mind. Someone hoping to buy sooner will still need a savings plan that works before the new product launches. 

A reduced Lifetime ISA withdrawal charge for homes above the cap 

From 29 October 2026, Lifetime ISA withdrawals used to buy a property costing more than £450,000 will attract a reduced withdrawal charge of 20%. The change is intended to protect the value of individual contributions when a property is above the price cap. 

If rising house prices have put your intended purchase above the cap, the reduced charge could ease the cost of accessing your deposit. It does not make the withdrawal charge-free, however, and the outcome will depend on your account value and the applicable rules. 

Before withdrawing, check how much you would actually receive and whether your purchase meets the conditions for the reduced charge. 

What about everyday spending? 

The fuel duty increase has been delayed 

The planned 5p per litre increase in fuel duty, previously due at the start of next year, has been delayed until 1 July 2027. 

The delay postpones an additional cost for motorists, but it does not guarantee that pump prices will stay the same. If driving is a significant part of your household spending, allow room for changing fuel costs in your budget. 

Which previously announced changes still need attention? 

Not every important change is new. The following measures were confirmed in a previous Budget and are due to take effect from April 2027. 

Unused pensions and Inheritance Tax 

From 6 April 2027, most unused pension funds and lump sum death benefits will form part of an individual’s estate for Inheritance Tax (IHT) purposes. The main exceptions will be lump sum death – in – service benefits and pension funds inherited by a spouse or civil partner. 

If you have been planning to leave your pension untouched for your family, this could change the overall tax position of your estate. It may be particularly relevant if your wider estate is already close to or above the IHT thresholds. 

This is a reason to review retirement income and inheritance planning together. Spending a pension, making gifts or changing beneficiaries can have other consequences, so decisions should reflect your own future needs as well as what you hope to leave behind. 

A change to how the Personal Allowance is used 

From April 2027, Income Tax ordering rules will require the Personal Allowance to be set against earned income and pensions before dividend, savings and property income. 

If your income comes from several sources, the order in which the allowance is used could affect your tax bill. You may have less flexibility to use it against income subject to the new, higher savings or property tax rates. 

Reviewing each income source in isolation may miss the wider effect. A joined – up view of earnings, pensions, rent, interest and dividends can help you understand your income after tax. 

What should you consider next? 

You do not need to change your financial plan every time there is a Budget. But it is worth checking whether the assumptions behind it still support the life you want to lead. 

A useful starting point is to ask: 

• Could changes to pension increases or tax affect my retirement income? 

• Are my savings held in accounts that suit my goals, timescale and tax position? 

• If I own a business or rental property, could my income or eventual sale proceeds change? 

• Could the first-home measures affect how I save for a deposit or support my family? 

• Does my inheritance plan reflect the upcoming changes to pensions? 

If you are already an Attivo client, your Financial Planner can help you explore what the announcements could mean for your circumstances. If you are not yet a client, a conversation with Attivo can help you understand how financial planning could bring your retirement, family and future goals together. 

Arrange a free, no-obligation consultation with us today 

We offer a free initial consultation to discuss your goals and next steps. If you decide to go ahead with advice, charges may apply – these will be explained before you commit. 

The aim is not to react to every headline. It is to make informed decisions with a clear view of what matters most to you.