The UK’s Autumn Budget 2026 brought changes affecting savings, pensions, rental income and first-time buyers, and one of the most consequential is a rise in tax on savings interest and property income from April 2027. From 6 April 2027, tax rates on savings interest and property income will increase by a further two percentage points, on top of rises previously announced, according to analysis of the Budget documents. The resulting basic, higher and additional rates will be 24%, 44% and 49%. Available savings allowances still apply: basic-rate taxpayers normally have a £1,000 Personal Savings Allowance, higher-rate taxpayers £500, and additional-rate taxpayers have none. Interest within an ISA remains tax-free, which makes the ISA decision more important, not less, for savers with meaningful cash holdings. Cash ISA cut cancelled. One piece of good news for savers in the same Budget was the cancellation of a planned reduction in the annual cash ISA limit. That change had worried savers who use cash ISAs as their main tax-free shelter, and its cancellation means the existing limit stands. The combination — higher tax outside ISAs, unchanged shelter inside them — pushes savers toward checking how much of their cash is actually sheltered. The savings rates apply across the UK. The new property income rates apply in England, Wales and Northern Ireland and concern personal income tax on rental income. Landlords and savers alike will need to check their position well before April 2027, because the change is announced but not yet in force, and further detail and legislation may follow. What to do before April 2027. The practical steps are unglamorous but worthwhile: work out how much savings interest is expected in the tax year, check whether the Personal Savings Allowance covers it, and consider whether ISA allowance for the current year is being used. For rental income, the same logic applies — estimate the higher rate, set money aside, and do not assume last year’s tax bill will repeat. This article provides general information only and does not constitute personal tax or legal advice. Announced measures may remain subject to legislation, consultation and further detail, and tax treatment depends on individual circumstances.
