John Healey has delivered his first Budget as Chancellor. The headlines are written for everyone. This guide is split by situation, so you can go straight to the part that’s about you.
The Budget in a minute: what it means for you
If you have savings
Tax on savings interest rises from April 2027, but the Cash ISA limit stays at £20,000.
If you’re saving for retirement
Pension tax relief and tax-free cash are unchanged. From 2030, the State Pension will keep pace with wages rather than outgrow them.
If you’re retired
From April 2027, no income tax if your total income is no more than the full new State Pension.
If you’re planning what you’ll pass on
Inheritance tax thresholds stay frozen until 2031, and most unused pensions count towards your estate from April 2027.
If you have savings
In short: Savings interest outside an ISA will be taxed more from April 2027. The Cash ISA limit stays at £20,000.
24% · 44% · 49%
The tax on savings interest above your Personal Savings Allowance from April 2027, for basic, higher and additional rate taxpayers. That’s up from 20%, 40% and 45% today. Last year’s Budget planned a 2 point rise, and this Budget adds another 2.
The good news: the planned cut to the Cash ISA allowance won’t go ahead. You can still put up to £20,000 a year into a Cash ISA, and interest inside an ISA is tax-free, so making good use of your allowance matters more than before. How much you benefit depends on your circumstances, and tax rules can change.
Worth asking your adviser
“Is my ISA allowance working for me?”
If you’re saving for retirement
In short: Pension tax relief and tax-free cash are unchanged. From April 2030, the State Pension will keep pace with wages rather than outgrow them.
Tax-free cash was the subject of rumours again this year, and some people took theirs early just in case. Once it’s out, it generally can’t be put back without tax consequences. Pension rules can change in future, and how they affect you depends on your circumstances.
The triple lock stays until April 2029. From April 2030, the State Pension will still rise every year by at least 2.5% or inflation, but over time it will keep pace with wages rather than outgrow them. It’s a foundation, not the whole plan, so it’s worth checking your State Pension forecast.
Worth asking your adviser
“How does the State Pension fit into my retirement income?”
If you’re retired
In short: From April 2027, you won’t pay income tax if your total income is no more than the full new State Pension.
The new Pension Tax Allowance runs from April 2027 to April 2030. If your income is just above the full new State Pension, the allowance tapers away gradually rather than stopping dead.
Tax rules can change, and how this affects you depends on your circumstances, including any other income you have.
Worth asking your adviser
“Will the Pension Tax Allowance apply to me?”
If you’re planning what you’ll pass on
In short: Inheritance tax thresholds stay frozen until April 2031. From April 2027, most unused pensions will count towards your estate.
The nil rate band is £325,000, with up to £175,000 more if you leave your home to your children or grandchildren. As house prices rise and pensions join the calculation, more families will find themselves over the line.
There are still well-established ways to plan, from gifting during your lifetime to the order you use your pensions and savings. Inheritance tax is complex, depends on your circumstances and can change, so it’s worth getting advice before acting.
New to this? Read our plain English guide to the nil rate band.
Worth asking your adviser
“Will my pension count towards my estate, and does that change how I should use it?”
What didn’t change
Why it’s worth talking to an adviser now
A Budget speech covers the whole country in under an hour. It can’t tell you whether your own plan still works.
Most of these changes start in April 2027 or later, so there’s time to get it right. The moves people tend to regret are the rushed ones: taking money out of a pension because of a rumour that came to nothing, or giving money away before knowing the full picture.
“Budgets make headlines for a day. The decisions they prompt can last a lifetime. My advice to anyone reading the coverage is simple: don’t act on a headline. Talk to someone who knows your situation first.”
Ian Riggs
CEO, EIGHT Financial Advice
Your next step
If you don’t have an adviser yet, start with a conversation. Pop your postcode into our adviser finder to see who’s local to you. There’s no obligation to proceed after that first conversation. Any fees are agreed upfront, before you commit to anything.
Already with EIGHT? Your adviser knows your plan, so they’re the best person to ask what’s changed for you. It’s also a good moment to bring anything else into the conversation: a pension from an old employer, savings you haven’t looked at in a while, or how you’d like to pass things on.
Correct as at 28 October 2026, based on the Chancellor’s Budget statement. Budget announcements can change before they become law.
Sources: Budget 2026, HM Treasury; Budget 2025: overview of tax legislation and rates, HM Treasury; Inheritance Tax: unused pension funds and death benefits, HMRC.
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