Chancellor John Healey will deliver the Autumn Budget on 28 October 2026, his first since taking on the role. Until then, there’s plenty of speculation, and nobody outside the Treasury knows exactly what will be announced. Here we separate what has already been confirmed from what is only rumoured, and explain what it could mean for your finances.
It helps to first understand how the Budget works. The Chancellor announces the measures in a speech to the House of Commons, and many of them are then written into law in a Finance Bill later. Some changes apply straight away, while others start months or even years later, which gives people time to adjust.
Shrinking fiscal headroom
Fiscal headroom is the gap between what the government plans to spend and what its fiscal rules allow. At the previous Budget, it was around £22 billion, and forecasters now put it at somewhere between £5 billion and £11 billion. This implies that the government has significantly less room to manoeuvre compared to last year.
The government has also pledged not to raise the main rates of income tax, employee National Insurance or VAT. That leaves less visible ways to raise money: frozen thresholds, tighter reliefs and taxes on wealth and investments. Bishop Fleming calls this stealth taxation, and many commentators expect it to be the more likely direction.
Capital gains tax: a key area to watch
Capital gains tax (CGT) applies when you sell an asset, such as shares or a second home, for more than you paid for it. Most gains are currently taxed at 18% or 24%, depending on your income tax band. Rathbones points to a proposal that could bring CGT rates closer to income tax rates of 20%, 40% or 45% for some people. The tax-free annual exempt amount has already fallen from £12,300 to £3,000 since 2023.
Another idea gaining attention is removing the CGT uplift on death. At the moment, assets are reset to market value when someone dies, so gains built up over their lifetime are never taxed. Removing this relief could raise around £2 billion a year. Many commentators expect changes to CGT, though nothing has been confirmed. Changes don’t always take effect straight away either, so it’s worth getting advice before making decisions based on speculation.
Pensions: the tax-free lump sum and inheritance tax
The pension tax-free lump sum is currently capped at £268,275. Rumours of a cut may already be changing behaviour: Trustnet reports that people withdrew around £14 billion more than usual from pensions in 2025/26, up from £10 billion the year before.
What is confirmed is that from 6 April 2027, most unused pension funds will be included in your estate for inheritance tax purposes. If you have significant pension savings, it may be worth considering how this could affect your estate plans, ideally with the help of a financial planner. Taking money out early could create further problems. Withdrawals can trigger the money purchase annual allowance, which would reduce what you can pay into pensions to £10,000 a year. Speak to a financial planner before moving money out of a pension.
Frozen tax thresholds and fiscal drag
Income tax thresholds are frozen until April 2031, so the personal allowance – what you can earn before paying income tax – stays at £12,570. The inheritance tax nil-rate band has been £325,000 since 2009 and is also frozen until 2031.
This creates what’s known as fiscal drag. As wages, inflation, and property values rise but thresholds don’t, more of your income falls above that line. You could end up paying more without any rate going up, which is why freezing thresholds is so popular with governments.
Property: the ‘mansion tax’ and high-value homes
The High Value Council Tax Surcharge, often called the ‘mansion tax’, is confirmed to start in April 2028 on homes in England worth £2 million or more, with annual charges of £2,500 to £7,500. Trustnet reports the threshold could fall to £1.5 million, which would roughly double the number of homes affected to around 300,000. Rathbones also reports possible increases to the annual tax on enveloped dwellings, a charge on high-value homes held through companies.
Views on a broader wealth tax differ. Trustnet says it’s off the table for now, while Rathbones reports that a possible 2% annual levy on assets above £10 million has political backing but faces opposition in Cabinet. We’ll only know for sure on the day.
ISAs and cash savings
From 6 April 2027, the cash ISA limit is set to fall from £20,000 to £12,000 for people under 65. The overall £20,000 ISA allowance isn’t expected to change, so you could still put the full amount into a stocks and shares ISA. If you hold savings in a cash ISA, it may help to understand how the new limit could affect you before it applies.
How to prepare for the Autumn Budget
Start with your goals and where you stand today, not the headlines. Tax should inform your decisions rather than make them for you, and a well-built financial plan can adapt whatever the Budget brings.
Your allowances. Your ISA allowance, pension annual allowance, and CGT exemption all reset after 5 April 2027.
Your estate plan. Some estate plans rely on reliefs or thresholds that could change, especially with pensions coming into inheritance tax.
What’s confirmed. Many predicted Budget changes never happen, and those that do may not take effect straight away. Take your time before making any decisions.
We’ll share what the Budget means for you as soon as the details are confirmed on 28 October. In the meantime, if you’d like to talk through your own position, get in touch with one of our financial planners.
Aventur Wealth Ltd is authorised and regulated by the Financial Conduct Authority (FRN 968770)
This content is for information purposes only and does not constitute financial advice. For personalised advice, please speak to an Aventur adviser.
Tax treatment depends on your individual circumstances and may be subject to change. This content does not constitute tax advice.
Pension and retirement planning involves complex rules. Tax treatment depends on individual circumstances. The value of pension funds can fall as well as rise. You may get back less than you invest.
The value of investments can fall as well as rise and you may get back less than you invested. Past performance is not a guide to future performance.
Figures reflect information available at the time of writing (October 2026), so please check the latest GOV.UK guidance before acting.
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