The BWP Bulletin ยท The Budget Edition
Business sale relief halved, cash ISA changes scrapped, and the dates that haven’t moved. Here are the three things we think matter most for your plan, with the noise filtered out.
A note from Toby
This edition is all about the Budget. Below are the three things we think matter most to you. As always, we’ve filtered out the noise so you can focus on your goals.
Toby Bentley, Director
Relief halved for those selling a business
From 6 April 2027, the lifetime limit on Business Asset Disposal Relief (the lower rate of Capital Gains Tax on a sale) will be cut from £1 million to £500,000.
A new Founder’s Relief (a 10% rate on up to £10 million of lifetime gains for high-growth founders) is also planned from the same date, though the qualifying rules are yet to be published.
If a sale is on your horizon, timing and structure matter more than they did before. Better to plan now, before it becomes urgent.
Cash ISA cut scrapped
The planned cut to the cash ISA allowance (from £20,000 to £12,000 for under-65s) has been scrapped. A new Starter ISA is also on the way for first-time investors. We’ll share how it works once the details are confirmed.
Outside an ISA or pension, tax on savings interest and rental income will rise by a further 2 percentage points from April 2027, on top of the rise announced last year. That means rates of 24%, 44% and 49% for basic, higher and additional-rate taxpayers, after any tax-free allowances.
With tax on savings and rental income rising, where you hold your money matters more than ever. A quick review could help you keep more of it.
What hasn’t changed
There are no rises to the main rates of income tax, National Insurance, VAT or Capital Gains Tax. Dividend tax and tax-free lump sums from pensions also remain unchanged.
However, income tax thresholds remain frozen until 2031, so more of your income will be drawn into higher bands as it grows. And from 6 April 2027, unused pensions still count towards your estate for inheritance tax.
Also in the Budget: the full new State Pension is expected to rise by 3.9% to around £13,036 a year from April 2027. If the State Pension is your only income, you won’t pay income tax on it between April 2027 and April 2030. If you have other income, such as a private pension, this relief reduces and may not apply.
A quiet Budget still leaves plenty to plan around. The dates already in the diary haven’t moved.
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Book a consultationImportant information. This article was first published in our October 2026 bulletin and reflects the Budget announcements at that time. Proposals may change before they become law, and some rules differ for Scottish taxpayers.
This article is for information purposes only and does not constitute financial advice, which should be based on your individual circumstances. The value of pensions and investments, and any income from them, can fall as well as rise. You may not get back the full amount invested. Tax treatment depends on your individual circumstances and may change in the future.
Please note that the Financial Conduct Authority (FCA) does not regulate some aspects of Cashflow Planning, Tax Planning or Inheritance Tax advice.