Chancellor John Healey delivered Budget 2026 on Wednesday 28 October 2026. Most headlines focus on the big numbers. This guide is about you: the changes that affect individuals and households, when they start, and what to do about them.
We've left out measures that mainly affect large businesses or are indirect taxes collected by businesses (they're listed at the end), so you can see what really matters for your own tax.
Quick answer: the 8 changes most people need to know
- Savings and rental income tax rises to 24% / 44% / 49% from 6 April 2027.
- Income tax rates and thresholds stay frozen. The personal allowance remains £12,570.
- Cash ISA limit stays at £20,000. The planned cut was scrapped.
- New Pension Tax Allowance for pensioners on the State Pension (from April 2027).
- Trading allowance triples from £1,000 to £3,000 (from April 2027).
- Mileage rate above 10,000 miles rises from 25p to 35p (from April 2027).
- Homes and energy: 0% VAT on household electricity extended to 30 June 2027, a £100 Household Energy Payment from January 2027 (England, bands A–D), a new First Time Buyer ISA (2029) and 20% equity loans for first-time buyers (April 2027).
- Coming in 2028: a "mansion" council tax surcharge on £2m+ homes and 3p a mile road tax for electric cars.
Find what affects you
| If you… | Key changes | Read |
|---|---|---|
| Have savings or rent out property | Savings & property rates rise to 24/44/49%. ISA limit kept at £20,000. | Savers & landlords |
| Are a pensioner or saving into a pension | Pension Tax Allowance; death benefit and ill-health rule changes; pensions still in IHT from April 2027 | Pensions & pensioners |
| Have a side hustle or are self-employed | £3,000 trading allowance; MTD penalty easement; Payments on Account reform from 2029 | Side hustles & self-employed |
| Are an employee or parent | Benefits in kind through payroll; mileage & subsistence rate changes; minimum wage; Child Benefit; student loans | Employees & families |
| Own a home, are buying, or drive | First Time Buyer ISA; Lifetime ISA penalty cut; equity loans; mansion surcharge; EV pay-per-mile; fuel duty; energy help | Homeowners, buyers & drivers |
| Invest, own a business, or hold crypto | BADR limit halved; new 10% Founders' Relief; share schemes; crypto lending & stablecoin rules | Investors, business owners & crypto |
Timeline: when each change hits
| Date | Change |
|---|---|
| 28 Oct 2026 | Pension death benefits paid tax-free even after 2 years (members who died under 75). UK property CGT return penalties stop once reported on your tax return. |
| 29 Oct 2026 | Lifetime ISA penalty for homes over £450,000 cut from 25% to 20% |
| Jan 2027 | £100 Household Energy Payment (England, council tax bands A–D) |
| 1 Jan – 30 Jun 2027 | 5p fuel duty cut extended |
| 1 Oct 2026 – 30 Jun 2027 | 0% VAT on household electricity (Great Britain) |
| 1 Apr 2027 | National Living Wage £13.21 an hour. VAT on energy-saving materials returns to 5%. |
| 6 Apr 2027 | Savings & property income rates 24/44/49%; Pension Tax Allowance; trading allowance £3,000; mileage 35p over 10,000 miles; BADR limit £500,000; Founders' Relief 10%; crypto loans/liquidity pools "no gain, no loss"; stablecoins exempt from CGT; CSOP limit £120,000 |
| Apr 2027 | Company cars, vans, fuel and medical benefits taxed through payroll. "Your First Home" equity loans open (England). |
| 1 Jul 2027 | Fuel duty returns to pre-2022 levels, plus RPI inflation |
| Late 2027 | Securities Transfer Tax replaces stamp duty on shares (admin change) |
| 1 Apr 2028 | High Value Council Tax Surcharge (£2m+ homes, England). eVED: 3p a mile for electric cars, 1.5p for plug-in hybrids. New duty to correct errors in returns. |
| 6 Apr 2028 | New subsistence scale rates (£20 / £60 / £75). Most other benefits in kind through payroll. £2,500 Self Assessment threshold for employee expense claims removed. |
| Spring 2028 | Reformed Help to Save |
| Apr 2029 | First Time Buyer ISA replaces the Lifetime ISA for new savers. More regular Self Assessment payments for those on Payments on Account. Salary sacrifice pension NI cap (announced 2025). |
| Apr 2030 | Company car tax rates rise 1 point (EVs to 10%) |
What stayed the same
- Income tax rates (20/40/45%) and bands: frozen. The personal allowance stays £12,570 and the higher-rate threshold £50,270, frozen until April 2031 (announced in 2025).
- National Insurance: employee 8% / 2%, employer 15%, self-employed 6% / 2%. Main thresholds frozen.
- Dividend tax: 10.75% / 35.75% / 39.35%, with a £500 allowance (unchanged from 2026/27).
- Capital gains tax: 18% / 24%, with a £3,000 annual exempt amount.
- Inheritance tax: nil-rate band £325,000 and residence nil-rate band £175,000, frozen. Pensions still come into IHT from April 2027.
- ISA allowance: £20,000 (cash limit kept at £20,000). Junior ISA £9,000.
- Pension annual allowance: £60,000.
- Personal Savings Allowance: £1,000 basic rate / £500 higher rate.
Changes that mostly don't affect individuals
These are real Budget measures, but they're aimed at companies, specific sectors or indirect taxes collected by businesses. Some may reach you through prices, but they don't change your personal tax:
- Corporate: temporary bank surcharge rise (3% → 6%); multinational top-up tax "side-by-side" package; corporate interest restriction; foreign permanent establishment reform; R&D relief admin; capital allowance changes (main rate writing-down allowance cut, first-year allowance raised); oil & gas revenue levy.
- VAT for businesses: e-invoicing; reverse charge on overseas services; online marketplace liability extended to UK sellers; Tour Operators' Margin Scheme review; VAT126 claims.
- Duties and levies: Alcohol Duty rates (February 2027) and penalties; Soft Drinks Industry Levy; Machine Games Duty and Remote Gaming Duty; Air Passenger Duty on private jets; Landfill Tax; Climate Change Levy; Plastic Packaging Tax; HGV road tax support; customs rules for low-value imports.
- Admin for businesses: Direct Debit for VAT and PAYE from 2029; till-fraud software standards.
Running a limited company? Some business measures do matter to you. See our limited company director expenses guide and corporation tax service.
ProKeeper's view
Most people's tax bill won't move this year. The changes that matter land in April 2027, which leaves about five months to act. If you do just one thing, check how much savings interest and rental income you have outside an ISA, because that's where most of our clients will pay more. Pensioners on a modest income, side-hustlers and first-time buyers are the clear winners.
— Riya Simariya, Director, ProKeeper Limited
Is any of this law yet?
Not all of it. Most tax changes will be legislated in Finance Bill 2026-27, and some by secondary legislation. Measures can still change before they become law. We'll update these guides as legislation is published.
The Budget 2026 guide series
- Savers & landlords: the 24% savings and property tax rise
- Pensions & pensioners: the new Pension Tax Allowance
- Side hustles & self-employed: £3,000 trading allowance
- Employees & families: payroll benefits, mileage, Child Benefit
- Homeowners, buyers & drivers: ISAs, equity loans, mansion tax, EV tax
- Investors, business owners & crypto: BADR, Founders' Relief, crypto
Want to know what Budget 2026 means for your tax bill? Book a free consultation.
Official sources
- Budget 2026 document (HM Treasury)
- Overview of tax legislation and rates (OOTLAR)
- OOTLAR Annex A: rates and allowances
- Budget 2026 tax-related documents (HMRC)
Checked against the Budget 2026 documents published by HM Treasury and HMRC on 28–29 October 2026. General information, not personal advice. Most measures still need to pass through Finance Bill 2026-27.