I have stuck to what was actually announced and published on GOV.UK. This is general information for people in England who want a calm read of the main points for household finances. It is not personal advice, and it is not a reason to rush into anything. Most of the changes below do not start until April 2027 or later, and many still need to pass through Parliament in the Finance Bill.

The big picture

The government said it is not raising the headline rates of income tax, National Insurance contributions or VAT. Instead it has chosen a small number of targeted changes, mainly on income from savings and property.

Tax on savings interest and rental income

At last year's Budget the government had already announced that tax rates on savings income and property income would go up by 2 percentage points from April 2027. This Budget adds a further 2 points from the same date. From 6 April 2027:

  • Savings income: basic rate 24%, higher rate 44%, additional rate 49% (across the UK).
  • Property income, such as rent: basic rate 24%, higher rate 44%, additional rate 49% (England, Wales and Northern Ireland).

The government points out that the Personal Savings Allowance and the Starting Rate for Savings still apply, and that interest earned inside an ISA is not taxed.

ISAs

  • The cash ISA limit stays at £20,000. The cut that had been planned for April 2027 will not now happen.
  • The government will work with the investment industry on a possible new incentive for people putting money into a stocks and shares ISA for the first time. The details have not been designed yet.
  • A new First Time Buyer ISA is planned from April 2029. It will replace the Lifetime ISA for new savers, with up to £4,000 a year and a 25% government bonus paid when the money is used for a first home worth up to £450,000. The bonus is capped at £20,000 and there is no upper age limit. If you already have a Lifetime ISA, you can keep using it under the current rules.
  • From 29 October 2026, Lifetime ISA holders buying a first home above the £450,000 cap will pay a lower withdrawal charge of 20% rather than 25%, if the purchase otherwise meets the rules. Other unauthorised withdrawals stay at 25%.

Where money is invested, for example in a stocks and shares ISA, the value of investments can fall as well as rise, and you may get back less than you put in.

Pensions and the State Pension

  • Pension Tax Allowance: from 6 April 2027 to 5 April 2030, people over State Pension age whose total income is no more than the full new State Pension (£13,036.40 in 2027-28) will not pay income tax. The allowance tapers away just above that level and is fully withdrawn at £13,319. HMRC will apply it automatically, so there is nothing to claim. Your Personal Allowance stays at £12,570.
  • Triple Lock: the State Pension will keep rising by the highest of earnings growth, inflation or 2.5% each year up to April 2029. From April 2030 the formula changes, so the State Pension rises each year by the highest of 2.5%, inflation, or the amount needed to keep its value in line with earnings at the April 2029 level.
  • Pension death benefits: for payments made on or after 28 October 2026, beneficiaries will no longer be taxed simply because a tax-free pension or lump sum death benefit is paid more than two years after the person died. The government also plans to make it easier for people who are terminally ill to access their pension savings.

Two pension changes announced before today are still going ahead and were not altered:

  • Inheritance Tax and pensions: from 6 April 2027, most unused pension funds and pension death benefits will count as part of a person's estate for Inheritance Tax. This applies to deaths on or after that date and is already law. Death in service benefits from a registered pension scheme are excluded.
  • Salary sacrifice: from 6 April 2029, only the first £2,000 a year of pension contributions made through salary sacrifice will be free of National Insurance. Income tax relief on pension contributions is unchanged.

Income tax thresholds

I could not find any new change to the main income tax thresholds in the Budget document. The freeze announced last year still stands, so the Personal Allowance stays at £12,570 and the higher rate starts at £50,270 until 5 April 2031 (Scotland has its own bands).

Buying a first home

The government confirmed a £4.7 billion scheme called Your First Home in England. It offers 20% equity loans to first-time buyers who could not otherwise buy, with a deposit from 2.5%, household income caps of £110,000 outside London and £140,000 in London, and five years without interest on the equity loan. Pre-registration is due to open by the end of December 2026, with applications from February 2027 and the first loans from April 2027. Local price caps and full eligibility rules are still to be confirmed.

I did not find any change to residential Stamp Duty Land Tax rates in the Budget document.

Business owners and the self-employed

  • The tax-free Trading Allowance rises from £1,000 to £3,000 from 6 April 2027.
  • The lifetime limit for Business Asset Disposal Relief on Capital Gains Tax falls from £1 million to £500,000 for disposals from 6 April 2027. A new Founders' Relief, a 10% Capital Gains Tax rate on up to £10 million of lifetime gains for qualifying founders of high-growth companies, is planned from the same date, subject to consultation.
  • From April 2029, people who make Self Assessment payments on account will pay smaller amounts more often during the year.

What the OBR forecasts

These are the OBR's own central forecasts published alongside the Budget, not my predictions. The OBR expects UK growth of 1.2% in 2026 and 1.0% in 2027, then 1.6% in 2028. It expects inflation to peak at 3.8% in early 2027 and return to the 2% target by the third quarter of 2028. Forecasts can and do change.

A calm way to read all this

Most of these changes start in April 2027 or later, and the details will be confirmed in legislation. Headlines on Budget day often move faster than the official text, so I would suggest checking the GOV.UK documents before changing any plan. Tax rules can change, and how they affect you depends on your individual circumstances.

If you would like to talk through what the Budget means for your own situation, you are welcome to get in touch with me at Octo Financial Planning. There is no obligation.

Sources (as at 28 October 2026)

Craig Shilling, Octo Financial Planning Ltd. Octo Financial Planning Ltd is an appointed representative of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority and is entered on the FCA register (www.fca.org.uk) under reference 972331.