John Healey’s first Budget as Chancellor kept the government’s main promise. The rates of income tax, employee National Insurance and VAT are unchanged. That doesn’t mean everyone escapes, though. To raise money, the Treasury has targeted income from savings and property, capital gains and business owners. If you hold cash savings, own a rental property or plan to sell a business one day, the detail matters.

Where these rules apply: unless we say otherwise, figures in this guide are for England. Scotland sets its own income tax bands, so thresholds such as £50,270 don’t apply there, and Scotland and Wales can set their own tax rates on rental income. Some help, including the £100 energy payment and the bus fare cap, is for England only.

A higher tax rate on savings and rental income

The change most people will feel is the higher tax on savings and property income. From 6 April 2027, income tax on savings interest and rental income rises to 24% for basic-rate, 44% for higher-rate and 49% for additional-rate taxpayers. That’s 4 points higher than today: the last Budget had already set a 2-point rise, and this one adds 2 more. Tax on dividends is unchanged.

If your interest stays within your Personal Savings Allowance, you won’t notice any change. Larger cash balances are another matter, especially for higher-rate taxpayers and landlords, where the extra cost builds up over time. You have until April 2027 to plan.

ISAs are more useful than ever

There was good news for cautious savers. The government dropped the planned £12,000 cap on Cash ISAs, so savers of all ages can keep putting the full £20,000 annual allowance into cash if they want to. With tax on savings interest outside an ISA going up sharply, the ISA wrapper is worth more than ever. Once you have enough emergency savings you can reach quickly, using this year’s allowance is usually a sensible first step.

A new Starter ISA for first-time investors is also planned, though the details are still to come. It’s meant to help people who have only ever saved in cash start investing. Historically, over long periods, investments have usually beaten cash, though past returns are no guarantee of future ones. That only makes sense, though, for money you won’t need for at least five years, and only once you have an emergency fund in place.

Inflation and interest rates

The wider picture affects your plans as much as any tax change. Inflation rose to 3.5% in September, largely because of petrol prices after the conflict in the Middle East, and it’s expected to go above 4% early next year. Most commentators now expect the Bank of England to raise interest rates.

For savers, that cuts both ways. Savings rates may rise, but a 4% rate earns you almost nothing in real terms if prices are rising just as fast. Check what your accounts actually pay. Money left in an old easy-access account is probably losing value. If you’re thinking about a fixed-rate bond, ask whether you want to lock in now or wait to see where rates settle.

Investors should be ready for some ups and downs. Government borrowing costs have risen, and the Treasury’s spare room against its own borrowing rules has shrunk to around £15 billion. A well-spread portfolio is still your best protection against shocks you can’t predict.

Business owners and entrepreneurs

From 6 April 2027, the lifetime limit for Business Asset Disposal Relief is halved from £1 million to £500,000. The 18% rate is unchanged, and sales made before that date keep the £1 million limit. If you’re planning to sell your business, more of your gain may be taxed at the full Capital Gains Tax rate. Get advice before you agree a sale, and don’t bring one forward for tax reasons alone.

To balance this, a new Founders’ Relief will charge 10% on up to £10 million of lifetime gains for founders and early investors in fast-growing UK companies, from April 2027. The final rules are still being consulted on. Separately, since April 2026, higher limits set in last year’s Budget mean more growing companies can use the Enterprise Management Incentive scheme to give key staff tax-efficient share options.

Pensions and retirement

From 2027/28 to 2029/30, people whose only income is the State Pension won’t pay income tax. If you have a little other income, the protection falls by £1 for every £3 of it, and it stops altogether at around £13,320.

From 2030, the government plans to drop the earnings link from the triple lock, so pensions would rise by the higher of inflation or 2.5%. If you expect to retire in the 2030s or later, don’t assume your State Pension will keep rising as fast as it has. Your own workplace and personal pension savings will matter more.

Property

Stamp duty rates and thresholds are unchanged. A new £4.7 billion “Your First Home” equity loan scheme will help first-time buyers of new-build homes. If you’re a parent or grandparent planning to help with a deposit, it’s worth seeing how your gift and the scheme could work together.

What to do now

• Check where your cash is held. Make sure your rainy-day money sits in a competitive account, and use your ISA allowance before you hold cash elsewhere.
• Think about the household as a whole. Married couples and civil partners can usually move savings and investments between them without a tax charge, so holding them in the name of the partner who pays the lower rate may reduce your tax bill.
• If you’re a landlord, work out how a 4-point rise in tax on rental income affects your returns from April 2027.
• If you’re a business owner, talk to your adviser about the new £500,000 limit before you agree any sale.
• Don’t rush into anything. Budget measures still have to pass into law, and details can change. A good financial plan is built for decades, not one Budget.

This article is general information, not personal financial advice. Tax treatment depends on your own circumstances and may change. If you’re unsure, speak to a regulated financial adviser.