The October 2026 Budget: Recap of What Changed

The Budget was on 28 October. Here is every change that touches your own money, one line each.

The cut to cash ISAs is off, so everyone keeps the full £20,000 a year, in cash, investments or both.

The government will design a new Starter ISA with the industry, to reward people putting money into a stocks and shares ISA for the first time. The details are still to come.

From April 2027, tax on savings interest outside an ISA goes up 2 more points, to 24%, 44% and 49%.

Using a Lifetime ISA for a first home over its £450,000 limit now costs 20%, not 25%, so you get back what you put in.

A new First Time Buyer ISA replaces the Lifetime ISA for new savers, planned for April 2029. Existing Lifetime ISAs carry on.

Your First Home lends first-time buyers 20% of a new-build's price in England, with a 2.5% deposit and no interest for five years, from April 2027.

Homes in Council Tax bands A to D in England get £100 towards energy bills from January 2027.

Gas standing charges, the fixed daily charge, are set to go by the end of 2027, and the VAT cut on electricity runs to 30 June 2027.

From April 2027 to April 2030, pensioners whose total income is no more than the full new State Pension pay no income tax.

Unused pensions still count for Inheritance Tax from April 2027.

From April 2027, tax on rent goes up 2 more points, to 24%, 44% and 49%, and mortgage interest relief rises to 24% with it.

Fuel duty stays frozen until July 2027, so the rise due in January is off.

From April 2027, the tax-free mileage rate after 10,000 business miles goes from 25p to 35p.

Company car tax goes up 1 point in every band in 2030/31. Pay-per-mile for electric and plug-in hybrid cars still starts in April 2028.

The trading allowance for side income triples from £1,000 to £3,000 from April 2027.

Founders get a new 10% Capital Gains Tax rate on up to £10 million of gains from April 2027, and the Business Asset Disposal Relief limit halves to £500,000.

If you join Making Tax Digital in April 2027, your first four late quarterly updates get no penalty points. From 2029, Self Assessment will ask for more of the tax during the year.

Income tax bands stay frozen until April 2031, and the Plan 2 student loan threshold until April 2030. Tax on wages, dividends and capital gains does not change, and nor do the Inheritance Tax allowances.

Each change shows in Foliopeak from the day it starts. This isn't advice - it's what the rules now say.