Below is our summary of the key announcements. We appreciate there will be continued speculation in the media around this announcement, and this can be expected over the coming days and weeks. Should you wish to speak to an Adviser about how today’s announcements might impact your circumstances, please contact us here.
Minimum Wage: The UK's minimum and living wages will increase by 3.9% starting in April 2027.
Pension Tax Allowance: A new tax-free allowance for low-income pensioners receiving income up to the full new State Pension.
Pension Triple Lock: Healey confirmed this will stay in place until April 2029, but it will be permanently adjusted starting in April 2030, rising by whichever is higher out of Inflation (CPI) or 2.5%. However, a new ruleset will ensure the pension retains its relative value compared to general wages over the long term.
Cash ISA Allowance Remains: The Cash ISA allowance remains at £20,000 a year, with plans to lower the limit to £12,000 for under-65s scrapped.
Carer’s Allowance: A tapered reduction introduced, replacing the loss of the full allowance when earnings exceed £204 a week after tax.
Household Energy Support: A £100 payment to 20 million households in council tax bands A–D in England, with equivalent funding across the devolved nations.
Gas Bills: Fixed daily standing charges to be removed, with costs incorporated into unit rates.
Electricity VAT: The VAT reduction on electricity bills extended until July 2027.
Fuel Duty: The existing freeze extended until July 2027.
Property Income Tax: An additional 2% increase on income tax rates will be applicable to property income.
First Time Buyer ISA: The lifetime ISA will be replaced by the First Time Buyers ISA, with Healey confirming that from today, they are dealing with the withdrawal penalty so that if your future home costs more than the scheme's limit, you will get back at least what you put in.
Your First Home Scheme: The scheme is set to open for registrations in December 2026, with full applications from February 2027. Eligible first-time buyers will be able to access a 20% interest-free equity loan for five years with a 2.5% deposit.
Social and Affordable Housing: An additional £1bn put towards this 10-year programme, raising the funding total to more than £40bn.
Rough Sleeping Support: An additional £432m put towards the programme designed to give every rough sleeper in England an opportunity to be off the streets by Christmas 2026.
Business Asset Disposal Relief (BADR): The lifetime limit for BADR will be reduced from £1 million to £500,000 from 6 April 2027. Qualifying gains within the limit will remain subject to an 18% tax rate, while gains exceeding the threshold will be taxed at the standard Capital Gains Tax rates.
Business Rates Relief: The threshold for business rates relief for high street properties in England to rise from £12,000 to £18,000. Adult gaming centres and vape shops are to be excluded from these.
Founders’ Relief: A new relief will offer a reduced 10% Capital Gains Tax rate on up to £10 million in lifetime gains for founders of qualifying high-growth, innovative businesses.
Trading Allowance: The tax-free trading allowance for individuals with small self-employment or side-hustle earnings will increase from £1,000 to £3,000 from April 2027.
Capital Allowances: The first-year allowance for main-rate assets will rise from 40% to 50% for qualifying expenditure from 1 January 2027. However, the standard writing-down allowance for these assets will fall from 14% to 12% from April 2027.
Parental Pay: Paid parental leave extended to self-employed fathers.
Bank Surcharge: The surcharge on bank profits to double from 3% to 6% for 15 months from January lasting for 15 months.
Gambling Taxes: Tax on higher-stakes gambling machines to increase from 20% to 25%.
Online Marketplaces: Tighter rules for online platforms to tackle VAT avoidance by sellers.
AI: More than £600m of investment in projects related to artificial intelligence (AI), including an extra £120m for the UK's AI Security Institute.
Business Rates: Local areas to retain all business rates revenue by the end of the decade, with mayors receiving 20% from next year.
Income Tax: Mayors to receive a share of income tax receipts from 2028.
The long-term implications of the 2026 Budget will depend on individual circumstances and announcements anticipated to be made by the government later this year, making it important to understand how the changes may affect your financial plans. If you would like to discuss the potential impact on your wealth, investments or wider financial objectives, please contact our team to speak with one of our Advisers.
We will continue to monitor developments, but if you have any questions or concerns about your situation following the announcements, you can reach us on 01480 869 466 or email info@beaconwealth.co.uk.
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