Budget day has a familiar rhythm. The speculation builds for weeks, the headlines arrive in a rush, and then comes the quieter question that matters most: what does any of this actually mean for me?

The Chancellor, John Healey, delivered his first Budget on 28 October 2026. The government described it as offering ‘breathing space’ for households, and there were no increases to the headline rates of income tax, National Insurance or VAT. Beneath the headlines, though, there are several changes that touch savings, pensions, property and business ownership – the areas where careful planning tends to make the biggest difference.

We have picked out the announcements most relevant to the financial plans of our clients. Many of them do not take effect until April 2027 or later, and some are still subject to consultation, so there is time to think things through calmly.

At a glance

Source: HM Treasury, Budget 2026 (HC 726), 28 October 2026. Some measures are subject to legislation in Finance Bill 2026-27 or further consultation.

Savings and ISAs

The cash ISA limit stays at £20,000

Perhaps the most welcome news for savers. At last year’s Budget, the previous Chancellor announced that from April 2027 the amount under-65s could pay into a cash Individual Savings Account (ISA) each year would fall from £20,000 to £12,000. That plan has now been reversed. The cash ISA limit will remain at £20,000 for people of all ages, and the overall ISA allowance is also unchanged at £20,000.

The government has also said it will work with the investment industry to explore a new incentive for people opening a stocks and shares ISA for the first time. No details have been confirmed yet, so this is one to watch rather than act on.

Savings interest will be taxed more heavily

Last year’s Budget had already announced a two percentage point rise in the tax rates on savings income from April 2027. This Budget adds a further two percentage points. From 6 April 2027, interest that falls outside your allowances will be taxed at 24%for basic rate taxpayers, 44% for higher rate taxpayers and 49% for additional rate taxpayers. These rates apply across the UK.

The Personal Savings Allowance (the amount of interest you can earn tax-free each year, which depends on your tax band) and the Starting Rate for Savings remain in place. Even so, with income tax thresholds frozen until April 2031, more interest may become taxable over time. Holding cash within an ISA keeps the interest free of income tax, although cash savings can lose value in real terms if interest rates do not keep pace with inflation.

Changes for first-time buyers

From April 2029, a new First Time Buyer ISA is expected to replace the Lifetime ISA for new savers. It will keep the 25% government bonus on contributions of up to £4,000 a year, with the bonus paid when the money is used for a qualifying first home worth up to £450,000, capped at £20,000. Unlike the Lifetime ISA, there will be no upper age limit. Existing Lifetime ISA holders can continue under the current rules.

In the meantime, from 29 October 2026 the withdrawal charge for Lifetime ISA holders buying a first home above the £450,000 price cap falls from 25% to 20%. The 25% charge still applies to other unauthorised withdrawals.

Property income

Landlords will see the same two-step increase as savers. From 6 April 2027, income tax on property income will be charged at 24%, 44% and 49% at the basic, higher and additional rates. These rates apply in England, Wales and Northern Ireland. The government also intends to consult on expanding the information third parties report to HMRC about property income.

For anyone with rental property, this may be a good moment to revisit how the property sits within your wider plan, including your income needs, how the property is owned and your longer-term intentions for it.

Pensions and retirement

A new Pension Tax Allowance

The full new State Pension is expected to rise above the Personal Allowance (£12,570) from April 2027. To stop pensioners being drawn into tax solely because of this, the government is introducing a Pension Tax Allowance from 6 April 2027 until 5 April 2030.

If you are over State Pension age and your total income, from all sources, is at or below the full new State Pension, you will not pay income tax. The allowance tapers away for incomes just above that level. Most people with a private or workplace pension alongside their State Pension are likely to have income above this level, so many retirees will see little or no change. The government has said it will consider arrangements after April 2030 in the usual way.

The State Pension and the Triple Lock

The Triple Lock, which increases the State Pension each year by the highest of earnings growth, inflation or 2.5%, will continue until April 2029. From April 2030, it will be adjusted so the State Pension rises by the highest of 2.5%, inflation, or the amount needed to keep its value in line with earnings at the April 2029 level. In practice, the State Pension is expected to track earnings over time rather than rising ever higher relative to them. The government says the savings will help fund a National Care Service in England, offering personal care free at the point of use.

For those still some years from retirement, this is a reminder that the State Pension is likely to be a foundation for retirement income rather than the whole picture.

Pension death benefits

Under the current rules, a lump sum death benefit from someone who dies before age 75 can become taxable simply because it is paid more than two years after the death. This ‘two-year rule’ is being removed for payments made on or after 28 October 2026. The government will also change how tax is collected where a lump sum death benefit exceeds the deceased member’s allowance, and will make it easier for people who are terminally ill to access their pension savings.

What has not changed

It is worth being clear about what the Budget left alone. The Budget did not announce any change to the plan to bring most unused pension funds and death benefits into the scope of Inheritance Tax (IHT) from April 2027, nor to the £2,000 cap on pension contributions made through salary sacrifice that can be exempt from National Insurance from April 2029. No change was announced to the pension tax-free lump sum. The Pensions Commission’s final report on private pension adequacy is due in February 2027.

Business owners and entrepreneurs

Several announcements will be of particular interest to company directors and shareholders, especially anyone thinking about selling or passing on a business.

• Business Asset Disposal Relief (BADR): The lifetime limit on gains qualifying for the reduced 18% Capital Gains Tax (CGT) rate halves from £1 million to £500,000 for disposals made from 6 April 2027.
• Founders’ Relief: A new relief offering a 10% CGT rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies, from 6 April 2027. The detailed qualifying conditions are subject to a technical consultation, so it is not yet clear who will be eligible.
• Taxing company distributions: The rules on how distributions from companies to individual shareholders are taxed will be modernised from April 2028, with draft legislation expected in 2027. The government says capital treatment will be protected for genuine changes of ownership, including families passing down a business.
• Employee share schemes: The Company Share Option Plan is being renamed EMI2, with the individual option limit doubling from £60,000 to £120,000 and a longer exercise period, from 6 April 2027.
• Trading Allowance: The tax-free allowance for small amounts of trading and miscellaneous income triples from £1,000 to £3,000 from 6 April 2027.

The government also plans technical changes to make Venture Capital Trusts, the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme easier to use. These are higher-risk investments and are not suitable for everyone.

Inheritance Tax and trusts

Beyond the pension changes already in train, the Budget includes a technical measure clarifying when liabilities relating to trust property can reduce the value of an estate for IHT purposes, alongside strengthened anti-avoidance rules. This applies to deaths and other chargeable events on or after 28 October 2026. If you have existing trust arrangements, it could be worth discussing whether this is relevant to you.

Everyday matters

• Household Energy Payment: A £100 payment from January 2027 for households in England in council tax bands A to D. The VAT cut on electricity is extended to July 2027.
• Mileage rates: The 55p per mile tax-free rate for the first 10,000 business miles by car or van becomes permanent, and the rate above 10,000 miles rises from 25p to 35p.
• High Income Child Benefit Charge: HMRC will automatically offset Child Benefit overpayments against the charge, simplifying administration.
• National Living Wage: Rises by 3.9% to £13.21 an hour from 1 April 2027.

What this could mean for your plan

Budgets rarely call for hasty decisions, and this one is no exception. Most of the changes take effect from April 2027 or later, and several are still subject to consultation. Still, there are a few areas where a conversation could be worthwhile:

• If you hold significant cash or receive rental income outside an ISA or pension, you may wish to consider how the higher tax rates from April 2027 could affect your net income.
• If you are thinking about selling a business in the next few years, the reduced BADR limit from 6 April 2027 may be relevant to your timing and structure.
• With pensions due to come within the scope of IHT from April 2027, it could be worth reviewing how your pension fits with your wider estate and the wishes in your will.
• If you have children or grandchildren saving for a first home, the Lifetime ISA changes and the future First Time Buyer ISA may affect which route suits them.

At Cadence, we see the Budget as a moment to pause and check that your plan still reflects the life you want to lead, not a reason to change course for its own sake. If you would like to talk through what these announcements might mean for you and your family, your adviser will be happy to help.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future. Many of the measures described are proposals that are subject to legislation and consultation.

Tax treatment depends on individual circumstances and may be subject to change in the future. The value of investments, and any income from them, can go down as well as up and you may not get back the amount invested. A pension is a long-term investment and pension benefits are not normally accessible until age 55 (rising to 57 from April 2028).

Cadence Financial Planning Limited is an appointed representative of Family Capital Limited, which is authorised and regulated by the Financial Conduct Authority.