Autumn Budget 2026: what's decided, what's rumour, what it means for your money
Last reviewed , before the Budget
A lot of what you will read about this Budget is already decided. Some of it took effect months ago. The rest is speculation, and a preview piece rarely tells you which is which. This page does. Every measure carries one label, the gov.uk source, the date it starts, and a link to the calculator that shows what it means for you.
When: the Budget is on Wednesday 28 October 2026. The Office for Budget Responsibility publishes its forecast the same day.
On the day: we update this page from the official Budget documents once they are published on gov.uk, not from the speech or the previews. Every change is logged in the changelog at the bottom.
The labels: decided is already in law or published guidance with a start date; pledged is a government commitment, not law; announced means the details come on the day; rumour is press reports only, listed without figures.
Already decided
These were set before this Budget, most of them in Budget 2025. The government can still change them on 28 October, but as things stand each one is going ahead.
Income tax thresholds frozen until 5 April 2031
The tax-free Personal Allowance stays at £12,570 and the higher rate threshold at £50,270, with the matching National Insurance thresholds frozen too. The rates don't change, but as pay rises more of it lands in a taxed band. The Personal Allowance freeze is UK-wide. Scotland sets its own bands above it.
Runs to 5 April 2031 · Source: gov.uk · Take-home pay calculator →
Dividend tax up 2 points
Since 6 April 2026 dividends above the £500 allowance are taxed at 10.75% for basic rate taxpayers and 35.75% for higher rate taxpayers. The additional rate stays at 39.35%. UK-wide.
Started 6 April 2026 · Source: gov.uk · Dividend tax calculator →
Tax on savings interest up 2 points
From 6 April 2027 interest above your Personal Savings Allowance is taxed at 22%, 42% or 47%, up from 20%, 40% and 45%. UK-wide, including Scotland.
Starts 6 April 2027 · Source: gov.uk · Savings interest calculator →
New, higher tax rates on rental income
From 6 April 2027 property income, such as rent from a buy-to-let, gets its own rates: 22%, 42% and 47%. This applies in England, Wales and Northern Ireland. Scotland sets its own.
Starts 6 April 2027 · Source: gov.uk · UK tax rates 2026/27 →
Cash ISA limit cut to £12,000 for under-65s
From April 2027 you can put up to £12,000 a year into a cash ISA, inside the unchanged £20,000 overall ISA limit. The other £8,000 can still go into a stocks and shares ISA. Savers over 65 keep the full £20,000 for cash.
Starts April 2027 · Source: gov.uk · Savings interest calculator →
Unused pensions count for inheritance tax
From 6 April 2027 most unused pension funds and death benefits will be counted as part of your estate for inheritance tax. Until then, most pensions sit outside it.
Starts 6 April 2027 · Source: gov.uk · Inheritance tax calculator →
National Insurance relief on salary sacrifice capped at £2,000
From 6 April 2029 pension contributions above £2,000 a year made through salary sacrifice will pay employee and employer National Insurance. Below £2,000 nothing changes, and income tax relief on your pension is not affected.
Starts 6 April 2029 · Source: gov.uk · Salary sacrifice calculator →
A council tax surcharge on homes worth £2 million or more
From April 2028 owners of homes in England valued at £2 million or more pay a yearly surcharge on top of council tax, in four bands: £2,500, £3,500, £5,000 and £7,500 above £5 million. The owner pays, not the tenant. The consultation on how it works closed on 14 July 2026 and the government's response is not yet published.
Starts April 2028 · England only · Source: gov.uk · No calculator for this one
No VAT on household electricity this winter
From 1 October 2026 to 31 March 2027 VAT on domestic electricity in Great Britain is 0%, down from 5%. Gas is not included, and Northern Ireland stays at 5%.
1 October 2026 to 31 March 2027 · Source: HMRC · The legislation
Pledged
No rise in the main rates of income tax, employee National Insurance or VAT
The government has committed not to raise the headline rates of these three taxes, and Budget 2025 said so on the record. The government has since been reported as saying the commitment still stands. It covers rates only. Thresholds, allowances and other taxes are outside it, which is how the threshold freeze above happened without breaking it.
A commitment, not a law · Source: Budget 2025, gov.uk · Take-home pay calculator →
Announced, details due on the day
"Your First Home": a new scheme for first-time buyers
Announced on 26 September 2026 and due to be confirmed in the Budget. It is expected to back 2.5% deposits with a 20% government-backed equity loan on new-build homes from participating developers, with an interest-free period at the start. The household income cap, the local price caps and the length of the interest-free period are all still to be set out.
Start date not yet announced · Source: gov.uk · How much can I borrow? → · Stamp duty →
Rumour: reported, not confirmed
None of these has been confirmed by the government. We list the topic and today's rule so you know what would change, but not the rumoured figures, because a number in print tends to get remembered as fact.
Changes to Capital Gains Tax
Today: gains above the £3,000 allowance are taxed at 18% within the basic rate band and 24% above it.
A lower limit on tax-free pension cash
Today: you can usually take 25% of your pension tax-free, up to a lifetime total of £268,275. The government has been reported as playing this one down, but has made no formal statement.
Cuts to pension tax relief
Today: pension contributions get tax relief at your highest rate of income tax, so 20%, 40% or 45%, within the annual allowance.
Dividend tax moved closer to income tax rates
Today: 10.75%, 35.75% and 39.35% above the £500 allowance, after the 2-point rise in April 2026 listed above.
A lower starting point for the council tax surcharge
Today: the surcharge decided above starts at homes valued at £2 million, in England, from April 2028.
A wealth tax
Today: the UK has no annual tax on wealth itself. Wealth is taxed when it earns income, is sold at a gain, or is passed on at death.
Reported as not planned
Two ideas that got a lot of coverage have been played down by the government, according to press reports. Neither has a formal statement on gov.uk, so treat them as unlikely, not ruled out:
- A flat inheritance tax charge on every estate. Today inheritance tax is 40% above the nil-rate bands, and most estates pay none. Inheritance tax calculator →
- Replacing council tax and stamp duty with a single property tax. Today both still apply as normal. Stamp duty calculator →
What it means for your money: one worked example
The changes already decided land on people with savings, investments or rental income, more than on wages. Take a basic rate taxpayer on £40,000 with £2,000 of savings interest a year, held outside an ISA.
| Step | Now (2026/27) | From April 2027 |
|---|---|---|
| Savings interest | £2,000 | £2,000 |
| Personal Savings Allowance, tax-free | £1,000 | £1,000 |
| Interest that is taxed | £1,000 | £1,000 |
| Tax rate on it | 20% | 22% |
| Tax to pay | £200 | £220 |
That is £20 a year, on these figures, from a change that was decided last year. The same money in a cash ISA pays no tax either way, though from April 2027 the cash ISA limit for under-65s falls to £12,000. These figures assume the £1,000 allowance is unchanged; if the Budget changes it, we will update this example. Try your own numbers in the savings interest calculator.
Changelog
- Page published. Every decided, pledged and announced item checked against gov.uk, HMRC and legislation.gov.uk.
Frequently asked questions
When is the Autumn Budget 2026?
Wednesday 28 October 2026. HM Treasury confirmed the date on 31 July 2026, and the Office for Budget Responsibility will publish its economic and fiscal forecast on the same day.
Will income tax go up in the Budget?
The government has committed not to raise the main rates of income tax, employee National Insurance or VAT. That is a pledge, not a law. It covers the rates only. The tax-free Personal Allowance and the higher rate threshold are already frozen until 5 April 2031, so more of your pay is taxed each year your pay rises.
Should I act on Budget rumours before the day?
A rumour is not a rule. Nothing on the rumour list has been confirmed by the government, and measures announced on Budget day often start months later or come with exceptions that previews miss. This page reports what is official. It is not advice on what to do with your money.
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Not financial advice. This page reports what the government has published and labels everything else as unconfirmed. It is not a recommendation to do anything with your money, and it does not predict what the Budget will contain. Figures apply to England, Wales and Northern Ireland unless stated; Scotland sets its own income tax bands. Rules can change, including on Budget day. Sources: Budget 2026 date, HM Treasury, Budget 2025 overview of tax legislation and rates, Revenue and Customs Brief 10 (2026), Office for Budget Responsibility, UK tax rates 2026/27.