Chancellor John Healey delivers his first Autumn Budget on Wednesday 28 October 2026. Prime Minister Andy Burnham has ruled out raising the headline rates of Income Tax, National Insurance or VAT, honouring Labour’s 2024 manifesto commitment.
Together those three taxes make up close to 60% of total tax receipts, so keeping them frozen puts real pressure on the government to raise money elsewhere.
That’s the part worth paying attention to. If the biggest levers are off-limits, the Treasury has to look at everything else: capital gains, property, pensions, inheritance, and the quiet erosion caused by frozen thresholds. No one has confirmed any of this. Most of it is speculation. But it’s worth understanding where the pressure points are before 28 October, rather than reacting to headlines afterwards.
Quick answer: what’s being ruled out, and what isn’t
- Ruled out: increases to the main rates of Income Tax, National Insurance and VAT.
- In the frame for speculation: Capital Gains Tax rates and reliefs, property and wealth taxation, Inheritance Tax, and pension-related rules.
- Already confirmed and unrelated to the Budget itself: unused pension funds are due to come within the Inheritance Tax regime from April 2027.
- Not confirmed: any plan to replace Council Tax and stamp duty with a land value tax, or to introduce a new standalone wealth tax. The government has denied the former; there is no live proposal for the latter.
Capital Gains Tax: the area attracting the most attention
CGT is one of the more frequently discussed candidates for change. Two types of adjustment tend to come up:
- Raising CGT rates closer to Income Tax rates.
- Reducing or restructuring reliefs and allowances available to investors and business owners.
The annual CGT-exempt amount is already modest, so a meaningful number of investors could face tax on gains made outside tax-efficient wrappers even without any rate change. If you’re planning to sell investments, a second home, or a business in the near term, the timing of that disposal, and how much of your portfolio sits inside an ISA or pension, becomes more important the closer we get to Budget day.
Property and wealth: more noise than substance so far
Commentators have speculated about changes to higher-value residential property, and separately about a broader “wealth tax.” As things stand:
- The government has denied reports that Council Tax and stamp duty will be replaced by a land value tax in this Budget.
- There is currently no confirmed proposal for a new wealth tax.
Worth knowing, but not worth acting on prematurely.
Inheritance Tax and pensions
IHT remains a Budget-watch item in its own right, and the government has already locked in one change here rather than left it as speculation: most unused pension funds will come within the Inheritance Tax regime from April 2027. That’s not a Budget rumour — it’s existing policy with a known start date, which makes it one of the more concrete planning triggers on this list, particularly for anyone with a defined contribution pension they’d intended to pass on tax-free.
The tax rise nobody announces: fiscal drag
Not every tax increase needs a headline rate change. Freezing allowances and thresholds while wages and asset values rise pulls more people into tax, or into a higher band, purely through inflation and pay growth. For 2026/27:
- Personal Allowance: £12,570
- Higher rate threshold: £50,270 (England, Wales and Northern Ireland)
Neither figure has moved. As incomes rise around them, more taxpayers drift into higher bands each year without any minister having to vote for it. It’s the quietest tax rise there is, and it’s already happening.
Areas worth reviewing before 28 October
You don’t need to predict what Healey will announce — that’s largely guesswork until Budget day. What’s more useful is understanding where you currently stand, so that if something does change, you’re not starting from zero. Areas we’d typically look at with clients ahead of a Budget include:
- Pension contributions and retirement planning
- ISA allowances and investment planning
- Capital Gains Tax exposure on investments or other assets
- Inheritance Tax, gifting and estate planning
- Business remuneration, dividends and profit extraction strategies
- Whether your current investment strategy still fits changing market conditions
FAQs
When is the Autumn Budget 2026? Wednesday 28 October 2026.
Will Income Tax, National Insurance or VAT go up in the Autumn Budget 2026? The government has said no — Prime Minister Andy Burnham has committed to Labour’s manifesto pledge not to raise the main rates of any of the three for the rest of this Parliament.
Is Capital Gains Tax going to change in the Autumn Budget 2026? No one has confirmed anything. Commentators discuss possible CGT changes — either higher rates or reduced reliefs — more than almost any other option, but they remain speculation until the Chancellor speaks.
Is there a UK wealth tax coming in 2026? No confirmed proposal exists. People have discussed it publicly, but there is nothing official to act on yet.
Are pensions being brought into Inheritance Tax? Yes — separately from the Budget, most unused pension funds are already due to come within the IHT regime from April 2027. This is existing policy, not speculation.
Be prepared, not reactive
Rumours or headlines shouldn’t shape your financial position. The sensible approach is to understand where you stand now, flag the areas the Budget could affect, and wait for the actual detail before making changes. Once Healey has delivered the Budget and the legislation becomes clear, we can assess what, if anything, needs to happen.
That means less guesswork, fewer knee-jerk decisions, and a plan we build around your circumstances rather than the news cycle.
Review your position before the Budget. Book a free 15-minute call with the team at HSC Financial Advisers to talk through what the Autumn Budget 2026 could mean for you:
This article does not constitute tax, legal or financial advice, and you should not rely on it as such. The Financial Conduct Authority does not regulate estate and tax planning. For guidance specific to your circumstances, please seek professional advice.