The Budget: what could it mean for your financial plans?

Chancellor John Healey has announced a range of measures affecting savings, pensions, property and business owners. For clients of Wise Investment, here are some of the key points to consider.

• ISAs and savings: The £20,000 annual ISA allowance remains unchanged, with the planned reduction to the cash ISA limit abandoned. A new First Time Buyer ISA will replace the Lifetime ISA, although the details and transition arrangements are to be confirmed.

• Pensions and retirement: Pensioners whose only income is the full new State Pension will be protected from paying income tax during this Parliament. This is not a blanket tax exemption for everyone receiving the State Pension, particularly those with additional private pension or investment income.

• First-time buyers: A new ‘Your First Home’ scheme will be backed by £4.7bn of government lending over 5 years, aimed at helping buyers who do not have family financial support.

• Business owners: A new Founders’ Relief will offer a 10% tax rate on qualifying lifetime gains of up to £10m. At the same time, the threshold for Business Asset Disposal Relief will fall from £1m to £500,000. Anyone considering selling or passing on a business should understand how these changes could affect their exit and succession plans.

• Entrepreneurs: The trading allowance will rise from £1,000 to £3,000, alongside new support for young and female founders. These changes may be relevant to clients starting a business or developing an additional income stream.

• Cost of Living measures: Eligible households (homes in Council Tax bands A to D) will receive a £100 energy payment, from January 2027. Further measures include scrapping gas standing charges, with electricity to follow, and extending the 5p cut to Fuel Duty.

Just as important is understanding what has not changed. The overall annual ISA allowance remains at £20,000, and the Budget announcements above do not introduce a general increase in the main rates of income tax, nor capital gains and dividend taxes.  Pension contribution allowances and limits on benefits remain unchanged, and unused pension funds will still be subject to Inheritance Tax from April 2027, as planned.

The key is understanding how each announcement applies to your own circumstances. Tax allowances, reliefs and thresholds are only one part of a wider financial plan.

At Wise Investment, we believe good financial planning means looking at the bigger picture, and keeping your long-term objectives at the centre of the conversation, to help you make informed decisions.

If the Budget raises questions about your savings, retirement plans or business interests, speak to your financial planner about what the announcements could mean for you.

Angus Aston, Director and Senior Financial Planner at Wise Investment will be interviewed about The Budget on Thursday 29th of October 2026 on Get Radio. Tune in for more updates.

This post is for general information only and does not constitute financial advice. Financial planning should always be tailored to your individual circumstances. FCA no 230553.