The Budget on 28 October 2026 will land on top of a long list of investor tax changes that are already law. Dividend tax went up on 6 April 2026. From 6 April 2027, savings and property income will be taxed at higher rates, the cash ISA limit for savers under 65 falls to £12,000, and unused pension pots come into inheritance tax. This is what is settled as at 9 October 2026.
The date is confirmed. The Chancellor, John Healey, told the Treasury Committee in a letter published on 31 July 2026 that the Budget will be held on 28 October, and the Office for Budget Responsibility will publish its Economic and fiscal outlook alongside it.
Budget 2026: what is already decided
| Date | Change | Who it applies to | Status |
|---|---|---|---|
| 6 April 2026 | Dividend tax rates rise: ordinary rate 8.75% to 10.75%, upper rate 33.75% to 35.75%; additional rate stays 39.35% | UK taxpayers with dividends above the allowance, outside ISAs and pensions | In force (Finance Act 2026, s4) |
| 6 April 2026 | VCT income tax relief cut from 30% to 20% | New VCT subscriptions | In force (Finance Act 2026, s15) |
| 6 April 2026 | Long-term asset funds (LTAFs) qualify for stocks and shares ISAs, moving from the Innovative Finance ISA | ISA investors | In force (SI 2026/248) |
| 6 April 2026 | No new crypto ETNs in stocks and shares ISAs; they can be held in an Innovative Finance ISA, and existing holdings can stay | ISA investors | In force (SI 2026/248) |
| 6 April 2027 | Savings income tax rates rise from 20%, 40% and 45% to 22%, 42% and 47% | UK-wide | Legislated (Finance Act 2026, s5) |
| 6 April 2027 | New property income rates of 22%, 42% and 47% | England, Wales and Northern Ireland | Legislated (Finance Act 2026, s7) |
| 6 April 2027 | Cash ISA limit of £12,000 a year, within the overall ISA limit (£20,000 in 2026 to 2027) | Savers aged 64 or under at the end of the tax year; those aged 65 or over keep a £20,000 cash limit | Legislated (SI 2026/1018) |
| 6 April 2027 | Transfers from stocks and shares or Innovative Finance ISAs into cash ISAs banned | Savers under 65 | Legislated (SI 2026/1018) |
| 6 April 2027 | Flat-rate charge on interest paid on cash held in stocks and shares and Innovative Finance ISAs, at the savings basic rate (22% for 2027 to 2028), paid by the ISA manager | ISA holders of any age (Junior ISAs excluded) | Legislated (SI 2026/1018) |
| 6 April 2027 | Money market funds treated as cash-like: partial holdings allowed, wholly cash-like portfolios ineligible | Stocks and shares ISA investors | Legislated (SI 2026/1018; detail in HMRC newsletter 22) |
| 6 April 2027 | Unused pension funds and most pension death benefits brought into inheritance tax (death-in-service benefits and dependants’ scheme pensions excluded) | Deaths on or after 6 April 2027 | Legislated (Finance Act 2026, ss66 to 71) |
Sources: Finance Act 2026 (Royal Assent 18 March 2026); the Individual Savings Account (Amendment) Regulations 2026 and (Amendment) (No. 2) Regulations 2026; HMRC guidance. Tax treatment depends on your circumstances and can change.
Already in force since April 2026
Dividends above the allowance and outside an ISA or pension are now taxed at 10.75% for basic-rate taxpayers and 35.75% at the higher rate, according to the HMRC policy paper; see dividend investing in the UK. VCT investors get 20% income tax relief, down from 30%, while EIS stays at 30% and SEIS at 50%, per HMRC guidance. Our sister title SEIS Investments compares SEIS, EIS and VCTs. In ISAs, LTAFs moved into the stocks and shares ISA and new crypto ETN purchases moved out of it, as HMRC guidance for ISA managers sets out.
Coming on 6 April 2027
Savings income, such as bank interest outside an ISA, will be taxed at 22%, 42% and 47% across the UK. Property income gets its own rates at the same levels in England, Wales and Northern Ireland; HMRC says the government will work with the devolved governments of Scotland and Wales so they can set property income rates. See landlord tax in 2027.
The ISA changes are now law. The Individual Savings Account (Amendment) (No. 2) Regulations 2026 were made on 10 September 2026, laid before Parliament on 14 September and come into force on 6 April 2027. Our cover story explains the cash ISA changes, and a separate guide covers the 22% charge on ISA cash. The overall ISA limit is £20,000 in 2026 to 2027, according to GOV.UK.
What is not settled
The Lifetime ISA is due to be replaced by a new first-time buyer ISA. HMRC’s June 2026 newsletter said the consultation would close on 17 August 2026 and that, until the new product is available, Lifetime ISAs can still be opened and paid into. The newsletter gave no start date for the new product.
Investors have reacted to Budget uncertainty before. The Investment Association says retail investors withdrew £4.5bn from investments in October 2025, the last full month before the previous Budget. We do not speculate on what the Chancellor will announce; we will report what is confirmed. For how the wrappers fit together, start with our guide to tax-efficient investing.
