Autumn Budget 2026: what changed, what didn't and what's coming next

For all the build-up, this was a relatively quiet Autumn Budget.

The overall fiscal effect of the measures announced was around £7bn. That compares with £105bn at Former UK Chancellor Rachel Reeves' first Budget and £35bn at her second¹.

But 'quiet' doesn't mean 'nothing to see here'. Let's take a look at who will be affected in turn.

How the Budget will affect each of us

Savers and investors: how much more tax could you pay on interest?

One of the most important Budget changes is the four-percentage-point increase in the rates applying to savings income.

The relevant rates will rise:

• from 20% to 24% for basic-rate taxpayers
• from 40% to 44% for higher-rate taxpayers
• from 45% to 49% for additional-rate taxpayers.

For an additional-rate taxpayer, that means potentially losing almost half of taxable savings income to tax.

It’s also important to remember that ‘savings income’ doesn’t simply mean interest on money sitting in your bank account. Depending on your circumstances and the investment concerned, it can include interest from assets such as corporate bonds, as well as taxable gains arising from certain investment bonds.

The changes therefore make it increasingly important to consider where your investments are held as well as what you invest in.

ISAs remain particularly valuable because income and capital gains generated within the wrapper are sheltered from UK income tax and capital gains tax (CGT). Gains on gilts (UK government bonds) are also exempt from CGT.

What should you consider?
Review how much taxable savings income you’re receiving, whether you’re making appropriate use of your ISA allowance and whether your investments are being held as tax-efficiently as possible.

Cash ISAs: can you still put the full £20,000 into cash?

Yes.

The Chancellor has reversed the previous move to restrict how much of the annual ISA allowance could be allocated to cash. This means you can continue to put the full £20,000 annual ISA allowance into a cash ISA if you wish.

That will be welcome news for many people, particularly retirees and those saving towards shorter-term objectives such as buying a home.

However, having the ability to hold £20,000 a year in cash doesn’t necessarily mean you should.

The critical consideration is your real return after tax and inflation.

If the return on your cash fails to keep pace with rising prices, its purchasing power is falling even if the balance in your account is increasing. Cash flow modelling can be extremely useful here. It can establish how much readily accessible money you actually need for your lifestyle, emergencies and planned expenditure, and whether any surplus capital could potentially be invested for longer-term growth.

What should you consider?
Cash has an important role in most financial plans, but make sure the amount you hold reflects what you actually need rather than simply providing a feeling of security.

Landlords: what do the new property income rates mean?

Landlords are also affected by the four-percentage-point increase.

Rates applying to relevant property income will rise:

• from 20% to 24% for basic-rate taxpayers
• from 40% to 44% for higher-rate taxpayers
• from 45% to 49% for additional-rate taxpayers.

To put that into context, if a higher-rate taxpayer had £20,000 of taxable rental income, a 40% rate would represent £8,000 of tax. At 44%, that becomes £8,800, an £800 difference before taking account of their wider tax position.

This arrives after a difficult period for many landlords. Financing has become more expensive, the tax treatment of property has become less generous and energy-efficiency requirements have added further costs.

For some ‘accidental landlords’, perhaps someone who retained a flat after moving into a new home, this may prompt another look at whether keeping that property continues to make financial sense.

That doesn’t mean higher taxes automatically make property a poor investment. The important calculation is the net return after tax, financing costs and other expenses and whether that return justifies continuing to hold the property compared with other uses of your capital.

What should you consider?
Look beyond your gross rental yield and calculate what the property is genuinely returning after tax and costs, while also considering the wider tax consequences before deciding to sell.

Pensions: what changes from April 2027?

For the first time in a while, pensions escaped major new tinkering in this Budget. But that doesn’t mean pension planning can be put to one side.

From 6 April 2027, most unused pension funds are due to be included when calculating an individual’s estate for inheritance tax (IHT) purposes. That is a substantial change.

Pensions have traditionally been attractive not only because of the tax relief available when contributing and their tax-efficient investment environment, but also because many people have used them as part of their estate planning.

Bringing unused pension wealth into the IHT calculation changes that. It means pensions increasingly need to be considered alongside property, investments, savings and the rest of your estate rather than viewed simply as retirement assets.

There is a practical consideration too. Under the new rules, personal representatives and pension scheme administrators will need to exchange information so that pension benefits can be included in the IHT account. Having several pension arrangements could therefore make administering an estate more complicated.

If you have accumulated several pension schemes during your career, now is a good time to establish exactly what you have and where, review your expression of wishes and consider whether consolidating some arrangements could make your affairs simpler to manage.

What should you consider?
Review your pensions before April 2027, including your expression of wishes and who you would like to receive your pension benefits. If you have several pension arrangements, consider whether consolidation is appropriate. But don't look at your pensions in isolation. The important question is how they fit into your retirement income strategy and your family's wider IHT position.

Frozen tax thresholds: could you pay more tax even though rates haven't risen?

You don’t necessarily need an increase in headline income tax rates to end up paying more tax. Personal allowances and tax thresholds remain frozen.

As salaries, pensions and other forms of income rise while the thresholds stay in the same place, more people begin paying tax and existing taxpayers can gradually move into higher bands. This is known as fiscal drag.

Around four million additional people are estimated to have been pulled into the income tax system since 2023/24 as allowances have remained frozen.

The same fundamental issue exists with IHT.

If property and investment values rise while IHT allowances remain frozen, estates that were previously below the relevant thresholds can gradually be pulled into the IHT net.

The addition of most unused pension wealth from April 2027 could increase that exposure further.

What should you consider?
Don't assume your tax position is unchanged simply because the headline tax rate hasn’t moved. Rising income and asset values can materially alter your position against frozen thresholds.

Business owners: what changed and what do we still need to know?

There were also announcements affecting business owners.

Business Asset Disposal Relief, formerly known as Entrepreneurs' Relief, has been changed again, while the Chancellor has proposed a new Founders' Relief.

This is one area where I would urge some caution.

We don't yet have enough detail about precisely who will qualify for Founders’ Relief and how the final rules will operate. On initial analysis, the qualifying criteria appear quite restrictive, meaning only a relatively small number of businesses are likely to benefit. Further consultation and subsequent legislation should provide greater clarity.

For anybody contemplating selling a business, those details could be extremely important.

What should you consider?
If a business sale is on the horizon, keep the developing rules under review and seek advice before changing the timing or structure of a disposal based on the headline announcement alone.

What should you review before April 2027?

There are three areas I would put firmly on the agenda.

1. Your pensions
Understand what pensions you own, where they’re held, their value and any guarantees or benefits attached to them.

Then consider whether your existing retirement income and estate-planning strategy still makes sense once most unused pension wealth falls within the IHT regime.

2. Your overall inheritance tax position
Pensions are only one part of the calculation.

Property, investments, savings and other assets need to be considered together. Rising asset values, frozen allowances and the April 2027 pension changes mean your potential IHT exposure may look very different from when you last reviewed it.

3. How tax-efficiently your wealth is held
Higher rates on savings and property income make this increasingly important.

Review the balance between cash and investments, whether you're using appropriate tax allowances and wrappers, and whether the way your assets are structured continues to support your long-term objectives.

How can Canaccord Wealth help?

A good financial plan considers your wealth as a whole.

Cash-flow modelling can help establish what you need to maintain your lifestyle, while pension and estate planning can show how the April 2027 changes could affect the wealth eventually passed to your family.

We can also review how your savings and investments are structured and whether you're making appropriate use of available tax-efficient allowances and wrappers.

¹Spread-thin.pdf