Autumn Budget 2026: breathing space, but plenty to plan for.

Mr Healey delivered one of the densest Budget speeches in recent memory, against a difficult background of high government debt, soaring energy prices driven by a complex war, and interest rates above forecast. The speech contained more than 95 scored measures. Its focus was on giving households “breathing space” from cost-of-living pressures in an uncertain global climate, with incremental change kept within the fiscal rules.

For individuals and families

• Savings and property income tax up 2 points. From 2027/28, rates on savings and property income rise by two percentage points for basic, higher and additional rate taxpayers. Dividend tax rates are unchanged.
• New pensioner allowance. For three years, pensioners whose income is no more than the new state pension will be taken out of the tax net.
• Cash ISA U-turn. The planned restriction on the cash ISA limit for savers under 65 has been reversed.
• First Time Buyer ISA. This arrives from April 2029 and replaces the Lifetime ISA (LISA). Existing LISAs will continue, with a small cut to the penalty for buyers who breach the £450,000 purchase price cap.
• Energy support. Households in council tax bands A to D will receive a one-off £100 energy payment. Standing charges on domestic gas will be removed during 2027, or as soon as possible afterwards, with the cost moving onto unit prices.

For business owners and entrepreneurs

• Trading allowance tripled. It rises to £3,000 from 2027/28.
• Capital allowances rebalanced. The main first-year allowance rises from 40% to 50% from 1 January 2027. The main writing-down allowance falls from 14% to 12% from April 2027.
• Business Asset Disposal Relief halved. The lifetime limit falls from £1 million to £500,000 from 6 April 2027. If you’re considering a sale, timing now matters.
• New Founders’ Relief. A 10% capital gains tax rate will apply to gains of up to £10 million “for qualifying founders of high-growth, innovative companies”.
• EMI2: a more generous share option scheme. The Company Share Option Plan (CSOP) has been renamed Enterprise Management Incentives 2. It becomes significantly more generous from 6 April 2027, which is good news for businesses looking to reward and retain key people.

What next?

This first Burnham-era Budget produced a large amount of detailed documentation, with much still to digest. Our Budget summary highlights the points most likely to affect you. If you’d like to talk through what they mean for you, please get in touch.