Autumn Budget 2026: Savings and Property Income Tax Changes

From 6 April 2027, Autumn Budget 2026 proposes income tax rates of 24%, 44% and 49% on taxable savings income across the UK and on taxable property income for individuals in England, Wales and Northern Ireland. The Budget also announced a Pension Tax Allowance, a new First Time Buyer ISA and technical changes to venture capital tax reliefs. The rate changes are in the Finance Bill 2026–27, introduced on 4 November 2026.

2027–28 savings and property income tax rates

The latest proposal adds two percentage points to each of the 22%, 42% and 47% rates previously set for 2027–28. For example, £1,000 of savings interest fully taxable at the higher rate would give rise to £440 of tax under the proposal, compared with £420 under the earlier plan. The Personal Savings Allowance and starting rate for savings stay the same. The Budget announced no equivalent further increase in dividend income tax rates. See HMRC’s savings and property income tax policy note and its October savings update.

From April 2027, the tax calculation will generally stack employment, trading and pension income first, followed by property income, savings income and dividends. The Personal Allowance and general reliefs go against the first group before any remaining amount is allocated to minimise the tax bill. See the Finance Act 2026 ordering rules.

Pension Tax Allowance and the Trading Allowance

The full new State Pension is due to reach £13,036.40 in 2027–28, above the £12,570 Personal Allowance. The proposed Pension Tax Allowance is an automatic reduction in the tax bill for eligible people of State Pension age, worth up to £94 in 2027–28. It tapers by £1 for every £3 of total income above the full new State Pension. The announced measure covers 2027–28 to 2029–30. See the Pension Tax Allowance explainer.

The government also plans to increase the annual Trading Allowance from £1,000 to £3,000 from 6 April 2027. See the Budget 2026 policy document.

First Time Buyer ISA, Lifetime ISA and Help to Save

• First Time Buyer ISA. The new product is planned for 6 April 2029. It will offer a 25% bonus on qualifying withdrawals, capped at £20,000, for a first home costing up to £450,000. Existing Lifetime ISA holders can continue using and contributing to their accounts under the existing rules. See the government’s First Time Buyer ISA consultation response.
• Lifetime ISA withdrawal charge. Since 29 October 2026, qualifying first-home withdrawals for properties above £450,000 incur a 20% charge. Other unauthorised withdrawals remain subject to 25%. See the Lifetime ISA withdrawal charge guidance.
• Cash ISAs and Help to Save. The Budget retains the £20,000 annual cash ISA limit from April 2027 and plans to broaden the range of Help to Save providers in spring 2028. A new incentive for first-time stocks and shares ISA investors is still being explored. See the Budget announcements.
• ISA managers. Digital reporting, points-based penalties and HMRC’s suspension power are due from 6 April 2028. See HMRC’s October savings update.

SEIS, EIS and VCT changes for fundraising

From 6 April 2027, the government plans to allow qualifying Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) or Venture Capital Trust (VCT) share issues on the same day. Under the proposals, one investor’s late payment would not jeopardise relief for other eligible investors. Where an investment exceeds an EIS company limit, relief could remain available on the portion within the limit. The government also plans to review advance assurance and the transparency of fees. A separate VCT measure aligns the rate of relief clawback with the rate originally granted for relevant disposals of shares issued from 6 April 2026. See HMRC’s venture capital schemes policy note.

Other targeted income tax measures

• Scottish Government bonds. The proposed withholding exemption applies to interest paid from 28 October 2026. Investors would receive the interest gross.
• NS&I tracing error. Planned regulations would ease the income tax burden on affected estates for relevant interest and provide inheritance tax relief for affected holdings. See HMRC’s NS&I remediation policy note.
• Electricity Bill Discount Scheme. The government plans to exempt payments under the scheme from income tax with effect from 6 April 2026. See the official overview of tax legislation and rates.

For related measures, see our Autumn Budget 2026 summary for business owners and Budget 2026 capital gains tax update.

Kish Patel ACA, ICAEW · Founder, Consult EFC

Over 12 years across Big Four audit, Investment Banking, and corporate advisory. Kish works with SaaS founders, tech companies, and ambitious UK SMEs from £1M to £50M in revenue on fundraising, valuations, exit planning, and financial strategy. ICAEW regulated. Big Four trained. Based in London.