Every change at a glance
| What | What changes | From | Work it out |
|---|---|---|---|
| Income tax and National Insurance on earnings | No change for 2027/28: £12,570 personal allowance, 20% / 40% / 45%, thresholds frozen until April 2031 | - | Salary calculator |
| Savings income (interest) | Rates rise to 24% / 44% / 49%, two points above the 22% / 42% / 47% set at Budget 2025 | 6 April 2027 | Savings and rental guide |
| Rental (property) income | 24% / 44% / 49% in England, Wales and Northern Ireland; mortgage-interest relief at the property basic rate | 6 April 2027 | Rental income calculator |
| Business Asset Disposal Relief | Lifetime limit cut from £1,000,000 to £500,000; rate stays 18% | 6 April 2027 | BADR calculator |
| Founders' Relief (new) | 10% CGT on up to £10m of gains on shares, for founders of high-growth companies | 6 April 2027 | Founders’ Relief |
| Trading allowance | Rises from £1,000 to £3,000, with the Self Assessment reporting threshold | 6 April 2027 | Side hustle tax |
| Cash ISA limit | Stays £20,000 for all savers over 18 - the planned cut is reversed | April 2027 | - |
| Lifetime ISA | Withdrawal charge for homes above the £450,000 cap cut from 25% to 20% | 29 October 2026 | - |
| First Time Buyer ISA (new) | Replaces the Lifetime ISA for new savers: 25% bonus up to £20,000, homes up to £450,000 | April 2029 | - |
| Pension Tax Allowance (new) | Pensioners whose total income is up to the full new State Pension won't pay small amounts of income tax | 2027/28 to 2029/30 | - |
| Pension death benefits | The two-year rule that could make tax-free death benefits taxable is removed | Payments from 28 October 2026 | - |
| Inheritance tax | No change to rates or thresholds; unused pensions count from 6 April 2027 (already law) | 6 April 2027 | Inheritance tax calculator |
| National Insurance (voluntary) | 2027/28: Class 2 £3.80 a week, Class 3 £19.05; lower earnings limit £133 | 6 April 2027 | Voluntary NI abroad |
| Child Benefit | 2027/28: £28.00 a week for the eldest child, £18.55 for others | April 2027 | - |
| Dividends and capital gains tax rates | No change: dividends 10.75% / 35.75% / 39.35%; CGT 18% / 24%; £3,000 annual exempt amount | - | Dividend calculator |
Your salary: no change
The personal allowance stays £12,570 and the rates 20%, 40% and 45% for 2027/28, with thresholds frozen until April 2031. Employee National Insurance stays 8% and 2%. So the take-home on £30,000 is £25,120 a year, on £50,000 £39,520 and on £100,000 £68,557 - in 2026/27 and, on the Budget’s figures, in 2027/28. The lower earnings limit rises to £133 a week, which affects who builds a State Pension year, not what anyone pays.
Savings and rental income: higher rates from April 2027
Savings interest (UK-wide) and rental profit (England, Wales and Northern Ireland) get their own rates from 6 April 2027. Budget 2025 set them at 22%, 42% and 47% (Finance Act 2026 enacts the property rates); Budget 2026 proposes 24%, 44% and 49%. A higher-rate taxpayer with £5,000 of interest pays £1,800 in 2026/27 and £1,980 in 2027/28; a higher-rate landlord with £10,000 of profit and £4,000 of mortgage interest pays £3,200, then £3,440. Full worked examples are in our guide to savings and rental income tax from April 2027, and the rental income calculator now has a 2027/28 option.
Selling a business: BADR halves, Founders’ Relief arrives
Business Asset Disposal Relief keeps its 18% rate, but its lifetime limit falls from £1,000,000 to £500,000 for disposals on or after 6 April 2027 - on a £2,000,000 gain that is £30,000 more tax for a higher-rate taxpayer. A new Founders’ Relief charges 10% on up to £10 million of gains on shares, but only for founders who held 25% from the start of a company with £10m+ turnover, 15+ staff and strong growth; HMRC expects about 600 people a year to qualify. See tax on selling a business.
Pensions and inheritance
A new Pension Tax Allowance, from 2027/28 to 2029/30, means pensioners whose total income is up to the full new State Pension won’t have to pay small amounts of income tax through Simple Assessment. The two-year rule for pension and lump-sum death benefits is removed for payments from 28 October 2026. Inheritance tax rates and thresholds are unchanged, and most unused pension funds come into estates from 6 April 2027 - already legislated in Finance Act 2026 (inheritance tax calculator).
ISAs
The cash ISA limit stays £20,000 for everyone over 18 - the cut planned for April 2027 is reversed. From 29 October 2026 the Lifetime ISA withdrawal charge for a home above the £450,000 cap falls from 25% to 20%. From April 2029 a First Time Buyer ISA replaces the Lifetime ISA for new savers, with a 25% bonus on the final balance up to £20,000 for a first home worth up to £450,000.
Self-employed and side income
The trading allowance rises from £1,000 to £3,000 on 6 April 2027, and the Self Assessment trading-income reporting threshold rises with it. Voluntary Class 2 National Insurance goes to £3.80 a week and Class 3 to £19.05 in 2027/28 - but since 6 April 2026 Class 2 can’t be paid for time abroad (see voluntary NI while abroad).
What isn’t law yet
Most of the April 2027 measures above are to be legislated in Finance Bill 2026-27, and the Founders’ Relief rules are under consultation until 30 November 2026. We will update the figures if the final legislation differs.
Frequently asked questions
Does Budget 2026 change my take-home pay?
Not on a salary. Income tax and National Insurance rates and thresholds are unchanged for 2027/28, so someone on £50,000 still takes home £39,520 a year. The changes fall on savings and rental income, business sales, side income and pensions.
When do the Budget 2026 changes start?
Most on 6 April 2027. The Lifetime ISA charge cut applies from 29 October 2026, the pension death-benefit change to payments from 28 October 2026, and the First Time Buyer ISA from April 2029. Most measures still have to pass in Finance Bill 2026-27.
What happens to tax on savings interest?
From 6 April 2027 savings income above your allowances is taxed at 24%, 44% or 49% under the Budget 2026 proposal (Budget 2025 had set 22%, 42% and 47%). The personal savings allowance stays £1,000 for basic-rate and £500 for higher-rate taxpayers, and the cash ISA limit stays £20,000.
What changes for landlords?
Rental profit is taxed at its own rates from 6 April 2027 - 24%, 44% and 49% in England, Wales and Northern Ireland under the Budget 2026 proposal - and mortgage-interest relief is given at the property basic rate. A higher-rate landlord with £10,000 of profit and £4,000 of mortgage interest pays £3,200 in 2026/27 and £3,440 in 2027/28.
What is Founders' Relief?
A new 10% Capital Gains Tax rate on up to £10 million of gains on shares, from 6 April 2027, for founders who held at least 25% from the start of a high-growth company. The rules are being consulted on until 30 November 2026.
Did the cash ISA limit change?
No. The planned cut is reversed: the cash ISA limit stays £20,000 for all savers over 18 from April 2027.
Related
Sources
- Budget 2026: overview of tax legislation and rates (OOTLAR)
- Budget 2026 OOTLAR Annex A: rates and allowances
- Budget 2025 technical note: changes to tax rates for property, savings and dividend income
- Finance Act 2026, section 7: property rates of income tax for 2027-28
- HMRC: Capital Gains Tax - introduction of a new founders relief
- GOV.UK: voluntary National Insurance if you live or work abroad