Budget 2026 – Tax summary

The tax rates for income from property and savings are to be increased from April 2027: the basic rate will be raised to 24%, the higher rate to 44%, and the additional rate to 49%.

• Cash-free ISA Allowance maintained at £20,000 for all adult savers
• First Time Buyer ISA replaces the Lifetime ISA, with a government bonus of 25% of the final balance (up to a maximum of £20,000)
• New ISA Incentive for people investing in Stocks and Shares ISA for the first time
• Lifetime ISA withdrawal charges for purchases over the Lifetime ISA property cap reduced from 25% to 20% 

Stamp Duty Land Tax (SDLT) on rent paid under assured tenancies in England has been removed completely, effective from 1 May 2026.

• No CGT 'exit charges' on temporarily migrating trusts (where trusts temporarily become UK residents due to a trustee moving to the UK)
• Business Asset Disposal Relief lifetime limit reduced from £1,000,000 to £500,000 for qualifying disposals made on or after 6 April 2027

The government has also announced a technical consultation for a 'CGT Founders' Relief', intended to reward founders and early investors of high-growth and innovative UK companies with a lower CGT rate for disposals of shares and securities.