The Chancellor delivered the Autumn Budget on 28 October 2026. Most changes start on 6 April 2027, the start of the 2027/28 tax year. Here is what changes for you, and when.
When things change
- 29 October 2026: the Lifetime ISA charge for buying a first home over £450,000 falls from 25% to 20%.
- January 2027: a £100 Household Energy Payment for households in council tax bands A to D in England.
- 1 April 2027: the National Living Wage rises to £13.21 an hour.
- 6 April 2027: higher tax on savings interest and rental profits, a £3,000 trading allowance, the State Pension rises to £250.70 a week, the Pension Tax Allowance starts, and unused pensions start counting for inheritance tax.
- 30 June 2027: the last day of 0% VAT on electricity and the 5p fuel duty cut.
- End of 2027: gas standing charges due to be abolished.
- April 2028: a new surcharge on homes in England worth £2 million or more.
- April 2030: the State Pension triple lock changes.
Your pay
Income tax and National Insurance stay the same. The Personal Allowance is still £12,570, the higher rate still starts at £50,270, and employees still pay 8% National Insurance on pay between £12,570 and £50,270, and 2% above that. These thresholds are frozen until April 2031. With the OBR expecting prices to rise 3.1% in 2026 and 3.4% in 2027, a pay rise that only keeps up with prices still means a slightly bigger share goes in tax.
The minimum wage rises 3.9% from 1 April 2027:
| Age | Per hour |
|---|---|
| 21 and over (Living Wage) | £13.21 |
| 18 to 20 | £11.27 |
| 16 and 17, and apprentices | £8.31 |
Our salary calculator shows your take-home pay, and the hourly to salary calculator turns an hourly rate into a yearly one.
Your savings
From 6 April 2027, interest on savings outside an ISA is taxed at 24%, 44% or 49%, depending on your income band: 4 percentage points more than now, and more than the 2 points announced last year. The Personal Savings Allowance doesn’t change: the first £1,000 of interest is tax-free for basic-rate taxpayers, and £500 for higher-rate taxpayers.
| Salary | Interest outside an ISA | Tax on it in 2026/27 | In 2027/28 |
|---|---|---|---|
| £35,000 | £3,000 | £400 | £480 |
| £60,000 | £5,000 | £1,800 | £1,980 |
Interest in an ISA stays tax-free, so the rise matters most if you have large savings outside one. Our Autumn Budget calculator shows the change for your own pay and savings, and the savings interest calculator compares accounts after tax.
ISAs and saving for a home
- The Cash ISA limit stays £20,000. The cut to £12,000 for under-65s planned for April 2027 has been dropped.
- Lifetime ISA: from 29 October 2026, taking the money out to buy a first home over £450,000 costs 20% instead of 25%. Other early withdrawals still cost 25%.
- First Time Buyer ISA: from April 2029, it replaces the Lifetime ISA for new savers, with a 25% government bonus on the final balance, up to a maximum of £20,000, paid when you buy a first home worth up to £450,000. You can keep paying into an existing Lifetime ISA.
- Help to Save moves to banks and building societies from spring 2028. The details of the new scheme aren’t out yet.
See our Lifetime ISA calculator and where to invest.
Landlords and side income
- Rental profits get their own tax rates from 6 April 2027: 24%, 44% and 49% in England, Wales and Northern Ireland, instead of the 20%, 40% and 45% on other income.
- The trading allowance for side income rises from £1,000 to £3,000 from 6 April 2027, and so does the point at which you need to report it through Self Assessment. See side hustle tax.
- Employment expenses: from 6 April 2028, you’ll no longer need a Self Assessment return to claim more than £2,500 of work expenses your employer doesn’t pay.
- Company cars and other perks: from April 2027, employers must tax company cars, vans, fuel and medical benefits through payroll, with most other benefits following in April 2028.
Pensions and retirement
- The State Pension rises from £241.30 to £250.70 a week from 6 April 2027, £13,036.40 a year. See the State Pension explained.
- The Pension Tax Allowance starts in April 2027. The full new State Pension is now £466.40 over the £12,570 Personal Allowance, which would mean £93.28 of tax. People over State Pension age with a total income up to £13,036.40 won’t pay it. The allowance tapers away above that and is gone at £13,319. HMRC applies it automatically, from 2027/28 to 2029/30.
- The triple lock stays until April 2029. From April 2030 the State Pension will rise by the highest of 2.5%, inflation, or the rise needed to keep its value relative to earnings at the April 2029 level.
- Salary sacrifice: as announced last year, from 6 April 2029 pension contributions above £2,000 a year made by salary sacrifice will pay National Insurance.
- The Pensions Commission’s final report on private pensions is due in February 2027.
Our State Pension calculator shows what deferring would add, and the pension calculator your workplace pension.
Inheritance tax and capital gains
- Inheritance tax doesn’t change: the £325,000 nil-rate band and £175,000 residence nil-rate band stay frozen until April 2031. From 6 April 2027, most unused pensions count towards an estate. Farm and business property gets 100% relief on the first £2.5 million, as it has since April 2026. See our inheritance tax calculator.
- Business Asset Disposal Relief: the lifetime limit halves from £1 million to £500,000 for sales from 6 April 2027.
- Founders’ Relief: a new 10% capital gains rate on up to £10 million of lifetime gains for qualifying founders and early investors in high-growth companies, from 6 April 2027. The details are out for consultation until 30 November 2026.
Bills and help with costs
- Household Energy Payment: £100 paid from January 2027 to households in council tax bands A to D in England, through the council tax system.
- Electricity: the 0% VAT rate is extended until 30 June 2027, which is expected to take about £50 off the yearly Ofgem price cap in April 2027.
- Gas standing charges, about £108 a year for a typical household, are due to be abolished by the end of 2027 or as soon as possible after. Suppliers may recover some of the cost through unit prices, so what you save depends on how much gas you use.
- Fuel duty: the 5p a litre cut continues until 30 June 2027. On 1 July 2027 rates go back to their pre-2022 level and rise with RPI inflation.
- Child Benefit rises to £28.00 a week for the eldest child and £18.55 for each other child from April 2027. See the Child Benefit tax charge.
- Universal Credit: the £2,500 surplus earnings threshold stays until the end of March 2028. The Department for Work and Pensions will publish the 2027/28 Universal Credit and Pension Credit rates.
Homes worth £2 million or more
From 1 April 2028, homes in England worth £2 million or more pay a High Value Council Tax Surcharge on top of council tax:
| Home value | Surcharge a year |
|---|---|
| £2 million to £2.5 million | £2,500 |
| £2.5 million to £3.5 million | £3,500 |
| £3.5 million to £5 million | £5,000 |
| Over £5 million | £7,500 |
The charges rise with inflation each year, and homes are revalued every five years.
What to do now
- Use your ISA allowance for savings that earn more than your Personal Savings Allowance covers, before the higher savings rates start in April 2027.
- Check your savings interest outside ISAs with the Autumn Budget calculator.
- Landlords: plan for the higher tax on rental profits from April 2027.
- Check your State Pension forecast on GOV.UK, and fill any gaps in your National Insurance record.
- Claim Child Benefit even if you earn over £60,000: it protects a parent’s State Pension.