Beyond the Budget

Your savings could be taxed differently

From April 2027, the tax rates on savings income will increase.

For those with significant cash savings outside an ISA, this could mean paying more tax on the interest earned.

The good news is that the government has confirmed the Cash ISA allowance will remain at £20,000 a year, helping savers continue to benefit from tax-free interest.

What should you consider?

If you hold substantial cash savings, it may be worth reviewing how they’re structured.

Cash remains important for emergencies and short-term spending, but making use of available tax allowances could help your money work more efficiently.

Inheritance tax and passing on wealth

The Budget included changes to certain inheritance tax rules involving trusts.

These won’t affect everyone, but they reinforce the importance of regularly reviewing arrangements designed to protect and pass on family wealth.

Estate planning isn’t just about tax. It’s also about making sure the people and causes you care about are looked after in the way you intend.

First-time buyers

There was some welcome news for people saving towards their first home.

From 29 October 2026, the government is reducing the Lifetime ISA withdrawal charge from 25% to 20% for qualifying first-home purchases above the current £450,000 property price limit.

A new First Time Buyer ISA is also planned for April 2029.

What are the experts saying?

One of our investment partners, Canaccord Wealth, provided some useful commentary. Matt Phillips, Director of Wealth Planning, shared his initial thoughts below.

“From a wealth planning perspective, there was relatively little in today's Budget that should require people to fundamentally reconsider their financial plans. After several years of change, that relative stability is no bad thing. However, a relatively quiet Budget does not mean there is nothing for savers and investors to consider.

Financial markets appear to have taken some reassurance from the Chancellor's emphasis on fiscal credibility. Gilt yields edged lower as the speech got underway, while UK equities recovered earlier losses to trade marginally higher, broadly in line with their European counterparts. While the initial reaction has been relatively calm, investors will be watching closely to see whether the government's borrowing plans and growth ambitions can sustain that confidence.

The Chancellor has focused on immediate cost-of-living support, including a £100 energy payment for eligible households. But while this will provide some welcome relief, the continuing freeze on income tax thresholds means fiscal drag will steadily erode some of those benefits. As earnings and pensions rise, more people will find themselves paying tax or moving into higher tax bands, increasing their tax burden without any change to headline rates.

Perhaps more significant for wealth planning are the changes already coming down the track. From April 2027, most unused pension funds will be brought within estates for inheritance tax purposes, potentially changing how families approach retirement income, gifting and passing wealth to the next generation. This doesn't mean people should rush to withdraw money from their pensions, but it does reinforce the importance of reviewing retirement and estate planning strategies.

The key message from today's Budget is that while there may be fewer immediate changes than some had anticipated, significant tax and pension reforms are approaching. Savers and investors should use this period of relative stability to review their financial plans and ensure they are prepared for the changes ahead.”

So, do you need to do anything?

For many people, the answer will be not immediately.

A Budget doesn’t automatically mean your financial plan needs to change.

Good financial planning is about looking beyond individual announcements and ensuring your arrangements continue to support the things that matter to you.

That might be retiring when you want to, helping your children onto the property ladder, protecting your family’s financial future, or simply making sure you’re making the most of what you have.

Some of today’s announcements won’t take effect until April 2027 or later, and further details may emerge as legislation progresses.

We’re here to help you make sense of it all.
If you’re concerned about any of the announcements, or think your circumstances may be affected, please get in touch.

We can look at what the changes mean for you and whether there’s anything worth considering as part of your wider financial plan. While Budgets come and go, your goals are what really matter.

This communication provides general information only and does not constitute personal financial, tax or legal advice. Tax treatment depends on individual circumstances and may change. Some announced measures remain subject to legislation.