The Chancellor’s autumn Budget statement, typically delivered in October or November, sets out the government’s tax and spending plans for the coming year. For UK taxpayers, this often means changes to tax thresholds, allowances and rates that directly affect take-home pay, savings returns and investment decisions.

While official announcements remain embargoed until the Chancellor stands at the despatch box, financial analysts, think tanks and industry bodies have flagged several areas where adjustments are expected. This preview outlines the key tax and allowance changes anticipated in this year’s autumn Budget, based on pre-Budget speculation and recent Treasury consultations.

Income Tax and Personal Allowance

The Personal Allowance, currently frozen at £12,570 until April 2028 under existing policy, is unlikely to rise in this Budget according to most forecasters. The freeze was introduced as a stealth revenue raiser, pulling more workers into the tax system as wages increase with inflation (HMRC, 2026).

Higher rate (40%) and additional rate (45%) thresholds are similarly expected to remain unchanged. Some speculation points to a potential adjustment to the additional rate threshold, currently £125,140, though Treasury sources have not confirmed this.

National Insurance Contributions

National Insurance thresholds for employees and the self-employed are aligned with the Income Tax Personal Allowance at £12,570 per year. Analysts expect these to stay frozen as well, maintaining the current structure where earnings above this level attract Class 1 or Class 4 NICs.

Employer National Insurance, paid by businesses on wages above the secondary threshold, may face scrutiny. Reports suggest the Treasury is considering a modest increase to the employer NIC rate (currently 13.8%), though no formal proposal has been leaked.

Capital Gains Tax Allowance

The annual exempt amount for Capital Gains Tax (CGT) was reduced sharply in recent years, falling from £12,300 in the 2022/23 tax year to £3,000 for 2024/25 and beyond. Industry groups have called for this allowance to be restored or at least indexed to inflation, but Treasury insiders suggest it will remain at £3,000 for the 2027/28 tax year as well.

CGT rates themselves (10% and 20% for most assets, 18% and 24% for residential property) are not widely expected to change, though reform advocates argue the current system discourages entrepreneurship.

Dividend Allowance

The dividend allowance, which lets investors receive a certain amount of dividend income tax-free each year, currently stands at £500 (down from £2,000 in 2022/23). Pre-Budget chatter has not flagged further cuts, and some commentators believe the allowance may hold steady after consecutive reductions. Verify current rates with HMRC before planning dividend distributions, as policy can shift rapidly.

ISA Allowance

The annual ISA allowance has remained at £20,000 since April 2017. This covers the total you can contribute across Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs in a single tax year. Most analysis suggests the £20,000 limit will continue for 2027/28, with no increase anticipated despite inflation eroding its real value (MoneyHelper, 2026).

Read also: UK Income Tax Calculator: How to Work Out Your Take-Home Pay for 2025 to 2026

The Lifetime ISA annual contribution limit (£4,000, counting towards the overall £20,000 ISA allowance) is also expected to remain unchanged.

Inheritance Tax Thresholds

The nil-rate band for Inheritance Tax (IHT) stands at £325,000, with an additional residence nil-rate band of £175,000 available when passing a main home to direct descendants. Both have been frozen since 2020 and are legislated to remain fixed until April 2028. Budget speculation centres not on threshold increases but on potential reforms to reliefs, particularly Business Property Relief and Agricultural Property Relief, which some in Westminster view as overly generous.

Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) in England and Northern Ireland sees frequent tinkering. The current first-time buyer relief offers zero SDLT on properties up to £425,000 (and reduced rates up to £625,000), a temporary increase introduced in September 2022 and extended multiple times. This relief is set to revert to the original £300,000 threshold in March 2027 unless the Chancellor acts.

Property market observers expect the government to extend the higher thresholds again, given the political sensitivity around first-time buyers. However, no formal commitment has been made. Buyers planning completions in early 2027 should monitor the Budget closely, as the potential increase in SDLT liability could reach thousands of pounds depending on purchase price.

What Happens Next

The exact date of the autumn Budget will be confirmed by the Treasury in the coming weeks. Once delivered, HMRC publishes detailed guidance on GOV.UK, and most changes take effect from the start of the following tax year (6 April 2027).

Fiscal policy and budget decisions are covered in foundational economic texts such as Principles of Economics 3e, which explains how governments use taxation and public spending to influence economic activity.

If you are planning financial decisions around tax thresholds or allowances, verify current and proposed rates with an FCA-authorised financial adviser or directly with HMRC. Tax rules and speculation can shift quickly, and this article reflects expectations as of October 2026, not confirmed policy.

Disclaimer: This article provides general educational information about anticipated UK tax and allowance changes and is not regulated financial or tax advice. Nexzoe is not authorised by the FCA. For advice tailored to your personal circumstances, consult an FCA-authorised Independent Financial Adviser or a qualified tax professional. Tax legislation and allowances are subject to change and may differ depending on individual circumstances.