Autumn Budget 2026: What to Check with Your Pension and Savings Before 28 October

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Chancellor John Healey is due to deliver his first Budget on Wednesday 28 October. With the cost of borrowing elevated, energy prices putting pressure on households and uncertainty in financial markets, it’s understandable that savers and investors want to know what comes next. We believe the sensible response is to understand what’s confirmed, recognise what remains speculation and review your plans before making changes.

The Treasury has not published what the Budget contains, and no one should treat any rumour about tax relief, ISA allowances or investment taxes as a rule that already applies.

Below we separate the changes already announced from the ideas being floated, then list what is worth checking now.

Already announced: what changes in April 2027

These measures come from earlier Budgets and published HMRC papers. None depends on the Chancellor’s speech, and nothing we have seen suggests the Budget will reverse them.

Change From What it means
Lower cash ISA limit 6 April 2027 Under-65s can pay £12,000 a year into cash ISAs. The   overall ISA allowance stays at £20,000, leaving up to £8,000 potentially available for other eligible ISA types; there is no obligation to use it. Over-65s keep the £20,000 cash limit.
Cash inside investment ISAs April 2027 HMRC sets out a 22% charge on interest paid on cash held in non-cash ISAs, alongside transfer restrictions. The restrictions have age-related exceptions.
Pensions and inheritance tax 6 April 2027 Most unused pension funds and death benefits count towards the value of an estate. Spouses and civil partners stay exempt.
Tax on savings interest April 2027 Rates of income tax on taxable savings income rise by two percentage points to 22%, 42% and 47%. Existing allowances continue to apply.

 

Whatever your age, the full £20,000 can still go into a cash ISA up to 5 April 2027. For the specifics, see HMRC’s policy paper on the cash ISA limit has the detail. We cover the pension change in Will Your Pension Be Subject to Inheritance Tax From 2027?

What market uncertainty can mean for mortgage rates

Swap rates drive fixed mortgage rates, and government bond yields in turn drive swap rates. When yields jump, lenders can reprice within days, and the trade press has reported lenders pulling their cheapest deals since early October. Yields could shift once more in either direction because of the Budget,

If your fixed rate ends within the next six months, ask an adviser about securing a new rate now. Many lenders let you do this well before the deal ends. Our mortgage advice page sets out how we compare what is available across the market.

What is being discussed

None of the following is confirmed, and some of it will not appear on the day.

  • Tax-free pension cash. A cut to the tax-free lump sum comes up before most Budgets. The Pensions Minister has dismissed some of the speculation.
  • Pension contribution tax relief. As of 17 October, we have no confirmation of any measure that would affect it.
  • Capital gains tax. Bringing its rates nearer to income tax rates has been suggested for some time.
  • Income tax thresholds. These remain frozen through April 2031. The Prime Minister has said there is no promise to alter them, although they will be considered.
  • Inheritance tax reliefs and property taxes. Commentators include reviewing reliefs and altering council tax bands in their lists of possible changes.

What to check before 28 October

Most of these checks are worth doing whatever the Chancellor says.

  • Pension beneficiaries. Check who your pension scheme has on file. That nomination is separate from your Will, and a marriage, divorce or bereavement can leave it out of date.
  • Your estate. If you last worked out its value before the April 2027 change, do it again with your pensions included.
  • Your ISA allowance. Decide how much of this year’s allowance goes into cash and how much into investments, which mostly comes down to when you will need the money.
  • Cash held in a stocks and shares ISA. Look at how much of it is sitting uninvested. HMRC’s policy paper sets a 22% charge on the interest that cash earns from April 2027, so it helps to know the figure before then.
  • Tax-free pension cash. If you are thinking of taking it early because of a Budget rumour, talk to us first. Once it has left your pension you cannot simply pay it back in, and any interest it earns may be taxable.
  • Investments outside an ISA or pension. Selling ahead of a possible capital gains tax change could leave you with a tax bill, and the market may recover without you. Keep your purchase records either way.

Autumn Budget 2026: frequently asked questions

When would the Budget measures take effect?

This varies from one measure to another. Some come into effect from the day of the speech, many at the beginning of the next tax year on 6 April, and others later. The documents released by the Treasury and OBR on the day state a date for each one.

Will the State Pension be taxed?

The State Pension is still taxable income, but whether any tax is due depends on your overall income and allowances. The Government has announced plans to make small tax liabilities easier to handle from 2027/28 for those with no income other than the basic or new State Pension, without increments. How this will be implemented has yet to be confirmed.

Does the lower cash ISA cap affect money already in my cash ISA?

No. The limit covers the amount you pay in during each tax year starting April 2027. Existing savings in a cash ISA can remain where they are, and their interest is still tax-free.

What if I die before 6 April 2027?

The date of death decides which rules apply. For a death before 6 April 2027, unused pensions are treated under the current rules, even when beneficiaries get the money later.

Is it worth giving money away now to reduce inheritance tax?

After seven years, gifts generally no longer form part of your estate for inheritance tax, so starting early helps in principle. But you cannot take back a gift, and you must retain enough to meet your own needs and care costs. There has been discussion of gifting rules ahead of previous Budgets, but no changes are confirmed. Get advice before giving away large amounts.

Talk to True Advice Financial Services

If you want a second pair of eyes on your pension, ISAs or estate before the Budget, call us on 01342 324171 or arrange a free initial conversation. We start from what you want your money to do and when you need it, then review the rules in that light.

 

Important information

This article is for general information only. It is not personal financial advice or a recommendation, and it does not take your circumstances into account. It reflects publicly available information as at 17 October 2026. The Budget has not yet been delivered, so measures described as discussed are unconfirmed and may not happen, and announced measures may change.

Tax treatment depends on individual circumstances and may change in future. The value of pensions and investments, and the income from them, can fall as well as rise, and you may get back less than you invest. Past performance is not a guide to future performance. Inheritance tax planning and tax advice are not regulated by the Financial Conduct Authority.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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Ashley Hollom
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