Budget 2026 tracker
The 28 October 2026 Budget: announcements for high earners and people thinking of leaving. Future measures remain subject to legislation and other stated conditions.
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Update date: .
Each topic starts with the position before the Budget. An empty after field means our review is still open. It does not establish that the rules are unchanged. Dates identify when measures are planned to start, not when they become law.
income tax thresholds
No change
- Before the Budget
- 2026-27: personal allowance £12,570; higher-rate threshold £50,270; additional rate above £125,140 in England, Wales and Northern Ireland. Scotland has separate bands.
- After the Budget
- The 2027-28 personal allowance remains £12,570 and the main higher-rate threshold £50,270. The freeze through 2030-31 was previously announced. Scottish rates and bands are set separately.
- Effective from
- 2027-04-06
Before source: GOV.UK: Income Tax rates and allowances. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: 100k tax trap; fiscal drag; stay or go; tax receipt.
£100k trap
No change
- Before the Budget
- 2026-27: the personal allowance falls by £1 for every £2 of adjusted net income above £100,000. It reaches £0 at £125,140.
- After the Budget
- The personal allowance still falls by £1 for every £2 of adjusted net income above £100,000. The 2026-27 salary calculation remains on its existing basis.
- Effective from
- 2027-04-06
Before source: GOV.UK: Income Tax rates and allowances. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: 100k tax trap; fiscal drag; stay or go.
National Insurance
Changed
- Before the Budget
- 2026-27 employee Class 1 NI: 8% between £12,570 and £50,270, then 2% above £50,270.
- After the Budget
- Employee headline rates are unchanged. For 2027-28 voluntary Class 2 is £3.80 a week and Class 3 is £19.05 a week, subject to legislation and eligibility.
- Effective from
- 2027-04-06
Before source: GOV.UK: National Insurance rates and categories. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: 100k tax trap; fiscal drag; stay or go; tax receipt.
non-doms and residence
Changed
- Before the Budget
- The remittance basis ended on 6 April 2025. Eligible arrivals can claim foreign income and gains relief for their first 4 UK tax years after 10 consecutive non-resident tax years.
- After the Budget
- The government says it will continue to assess the residence-based regime. It also plans an easing of the Capital Gains Tax exit charge for certain trusts that become UK resident when a trustee moves here and leave in the same or following year.
- Effective from
- 2026-10-28
Before source: HMRC: Check if you can claim the 4-year foreign income and gains regime. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury: Budget 2026. Checked 28 October 2026.
Related pages: non dom; statutory residence test.
capital gains tax
Changed
- Before the Budget
- 2026-27: main individual rates are 18% within the unused basic-rate band and 24% above it; annual exempt amount £3,000. Business Asset Disposal Relief has separate conditions and an 18% rate. Temporary non-residence rules can tax certain gains on return.
- After the Budget
- From 6 April 2027 the Business Asset Disposal Relief lifetime limit is planned to fall from £1 million to £500,000. A new Founders’ Relief is planned at 10% on up to £10 million of qualifying lifetime gains; its detailed design is under consultation.
- Effective from
- 2027-04-06
Before source: GOV.UK: Capital Gains Tax rates. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: exit tax uk.
inheritance tax
Changed
- Before the Budget
- 2026-27: standard rate 40% above a £325,000 nil-rate band; a qualifying home left to direct descendants can add up to £175,000, subject to estate-value taper. From April 2025, long-term residence generally means 10 of the previous 20 tax years; overseas assets can remain in scope after departure.
- After the Budget
- The Budget announces changes to deductions for liabilities in trust arrangements for deaths and other chargeable events from 28 October 2026. This does not establish a general change to long-term residence rules.
- Effective from
- 2026-10-28
Before source: GOV.UK: Inheritance Tax overview. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: non dom; exit tax uk.
pensions
Changed
- Before the Budget
- 2026-27: standard annual allowance £60,000 across employee and employer saving. High income or flexible pension access can reduce it; carry-forward may apply. Overseas transfers and treaty rules need separate checks.
- After the Budget
- A proposed Pension Tax Allowance runs from 2027-28 to 2029-30. From April 2030 the government plans to adjust the State Pension triple lock. Overseas uprating depends on the country; this announcement does not establish a change to frozen-pension countries.
- Effective from
- 2027-04-06
Before source: GOV.UK: Pension annual allowance. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: 100k tax trap; moving abroad from uk.
ISAs
Changed
- Before the Budget
- 2026-27: adult annual ISA subscription limit £20,000 across ISA types. The 2025 Budget planned a £12,000 cash ISA limit for under-65s from April 2027, within the £20,000 overall limit.
- After the Budget
- The government will retain the £20,000 annual cash ISA limit for adults from April 2027 instead of the planned £12,000 limit for under-65s. The overall ISA limit is £20,000. See the moving abroad guide for non-resident subscription rules.
- Effective from
- 2027-04-06
Before source: HM Treasury: Budget 2025. Baseline checked 28 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: moving abroad from uk.
dividends
No change
- Before the Budget
- 2026-27: dividend allowance £500. Rates above the allowance are 10.75% in the basic band, 35.75% in the higher band and 39.35% in the additional band. Use the dividend tax calculator for salary plus dividends.
- After the Budget
- The announced 2027-28 dividend rates remain 10.75%, 35.75% and 39.35%, with the £500 allowance. The calculator continues to use 2026-27 rules.
- Effective from
- 2027-04-06
Before source: GOV.UK: Tax on dividends. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: dividend tax calculator; exit tax uk.
property and mansion tax
Changed
- Before the Budget
- The High Value Council Tax Surcharge was announced in November 2025 for owners of English homes worth £2 million or more, from April 2028, in addition to Council Tax. Proposed annual bands range from £2,500 to £7,500. The 2026 consultation covers operation and support; this is announced policy, not a new 2026 Budget measure.
- After the Budget
- From April 2027, property income rates of 24%, 44% and 49% are planned for England, Wales and Northern Ireland. Scotland sets its own rates. The English high-value council tax surcharge starts in April 2028 with announced deferrals, discounts, exemptions and an empty-property premium.
- Effective from
- 2027-04-06
Before source: GOV.UK: High Value Council Tax Surcharge factsheet. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: mansion tax; exit tax uk.
general annual wealth tax
No change
- Before the Budget
- The UK has no general annual net wealth tax. The proposed 2% above £10 million is a campaign proposal, not a current rule.
- After the Budget
- The Budget report and HMRC tax measures overview do not announce a general annual net wealth tax. The separate savings and property income tax measures are covered in their own sections.
- Effective from
- Not recorded yet.
Before source: HMRC: Direct effects of illustrative tax changes. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury: Budget 2026. Checked 28 October 2026.
Related pages: wealth tax uk exit tax revenue.
exit tax
Changed
- Before the Budget
- Leaving the UK does not itself create a general bill on every asset. UK-source liabilities and temporary non-residence rules still apply; certain gains can be taxed on a return within 5 years, subject to the conditions.
- After the Budget
- From 28 October 2026, an existing Capital Gains Tax exit charge is planned to be eased for certain temporarily migrating trusts. This trust measure is not a general personal departure charge.
- Effective from
- 2026-10-28
Before source: HMRC: Tax if you leave the UK to live abroad. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HMRC: Budget 2026 tax measures, section 1.28. Checked 28 October 2026.
Related pages: exit tax uk; stay or go.
other
Changed
- Before the Budget
- 2026-27: salary tools cover employment Income Tax and employee National Insurance. They exclude student loans, benefits in kind, employer charges and other income. Any additional Budget measures will be recorded from official papers.
- After the Budget
- The trading allowance is planned to rise from £1,000 to £3,000 from 6 April 2027. The salary tools continue to model employment income and employee National Insurance, not other income.
- Effective from
- 2027-04-06
Before source: GOV.UK: Income Tax rates and allowances. Baseline checked 25 October 2026; future policies state their start date.
Announcement source: HM Treasury and HMRC: Budget 2026. Checked 28 October 2026.
Related pages: 100k tax trap; stay or go.
savings income
Changed
- Before the Budget
- In 2026-27 taxable savings income is generally charged at 20%, 40% or 45%. The 2025 Budget had already planned rates of 22%, 42% and 47% for 2027-28.
- After the Budget
- From 6 April 2027 the planned savings rates are 24%, 44% and 49% across the UK. These are two percentage points above the rates already planned for that year. Savings allowances and exemptions may apply.
- Effective from
- 2027-04-06
Before source: HMRC: 2025 Budget tax rates for property, savings and dividend income. Baseline checked 28 October 2026; future policies state their start date.
Announcement source: HMRC: Budget 2026 rates and allowances. Checked 28 October 2026.
Related pages: isa uk bank accounts abroad; 100k tax trap.