The final announcement introduced a range of measures – from extended freezes to changes across income, savings, property and investment taxation – that may influence long-term financial planning. We’ve highlighted the main areas below and linked to our full Budget Summary for more detail.

Income Tax and National Insurance

While income tax rates remain unchanged, the personal tax thresholds for most of the UK will stay frozen until 5 April 2031. This extends the effect of fiscal drag, where wage increases gradually move individuals into higher tax bands.

From April 2026, basic and higher rates of dividend tax will rise by two percentage points. From April 2027, savings and property income tax rates will also rise by two percentage points across all bands.

These changes underline the value of reviewing one’s tax position and considering how to make best use of allowances. Strategies such as pension contributions – which continue to receive tax relief at marginal rates – may help optimise tax efficiency. Married couples or civil partners may wish to revisit how income-producing assets are shared between them.

Pensions

From April 2029, only the first £2,000 of salary-sacrificed pension contributions will remain exempt from National Insurance, with amounts above this attracting both employer and employee NICs.

This change may affect those using salary sacrifice to avoid the £100,000–£125,140 marginal rate trap or to retain access to certain benefits. With several years before the rules take effect, early review of contribution strategies will be important.

Importantly, there were no further pension reforms in this Budget. Many will welcome the policy stability, particularly around tax-free cash.

Investments and Savings

From April 2027, the annual Cash ISA allowance for those under 65 will be limited to £12,000. The remaining £8,000 can still be used within a Stocks & Shares ISA, maintaining the overall £20,000 subscription limit. Individuals aged 65 and over can continue to contribute up to £20,000 into Cash ISAs.

From April 2026, Venture Capital Trust (VCT) tax relief will reduce from 30% to 20%. Further details around potential EIS changes are expected and will be monitored closely.

Inheritance Tax, Property and Other Measures

The Inheritance Tax nil-rate band and residence nil-rate band will remain frozen until April 2031. Unused agricultural and business relief allowances (up to £1 million) will also become transferable between spouses and civil partners, including where the first death occurred before April 2026.

From April 2028, a new tiered council tax surcharge will apply to properties valued at over £2 million, based on 2026 valuations.

Electric vehicles and plug-in hybrids will also face a new mileage-based charge from 2028/29, set at 3p per mile for electric vehicles and 1.5p per mile for plug-in hybrids.

Planning ahead is key

The Budget introduces several measures that may influence financial planning over the coming years. Freezing thresholds, rising rates and changes to reliefs highlight the importance of regularly reviewing your financial arrangements to ensure they remain aligned with your goals and structured as tax-efficiently as possible.

You can read our full Budget Summary here: Autumn Budget 2025 – Our Summary

You can view the Tax Tables for 2026/27 here: Tax Tables 2026/27

If you would like support in understanding what these changes could mean for you, Lync’s financial planners are here to help.