Budget 28 October 2026: What Is Already Settled, and What to Review Before the Chancellor Speaks

Quick answer: The Budget is on Wednesday 28 October 2026. Many of the biggest recent tax changes are already legislated or announced, so they apply whatever the Chancellor says. This article sets out what is settled, what is sensible to review before the day, and what we will do once the detail is published.

Budget week brings a lot of noise. Much of it is guesswork. We will not add to it. Instead, this piece covers the rules you can rely on today and the calm, practical steps worth taking now.

What is already settled

These rules are already in force or already scheduled. The Budget does not need to confirm them, and your planning can start from them.

Inheritance tax bands are frozen to 5 April 2031. The nil-rate band stays at £325,000 and the residence nil-rate band at up to £175,000, tapered away by £1 for every £2 of estate above £2 million. As values rise, more families are caught.

From 6 April 2026, 100% Business and Agricultural Relief is limited to the first £2.5 million. The allowance is for qualifying business and agricultural property, combined, for each person. Above £2.5 million, relief is 50%. Unused allowance can pass to a surviving spouse or civil partner. AIM shares get 50% relief in all cases. A company that mainly holds investments or lets property does not qualify at all.

Unused pensions come into inheritance tax from 6 April 2027. For deaths on or after that date, most unused pension funds and death benefits will count as part of your estate.

Business Asset Disposal Relief is 18% from 6 April 2026. It was 14% for 2025/26 and 10% before 6 April 2025. The lifetime limit is £1 million of qualifying gains.

Capital gains tax for 2026/27 is 18% or 24%. Gains within the basic rate band are taxed at 18% and above it at 24%. The annual exempt amount is £3,000.

Property income gets its own rates from 6 April 2027. In England, Wales and Northern Ireland, rental profit will be taxed at 22%, 42% and 47%, and the Section 24 credit rises to 22%. This is in the Finance Act 2026, which received Royal Assent on 18 March 2026. Our guide to the landlord tax rates from April 2027 has the detail.

Incorporation relief must be claimed from 6 April 2026. Landlords moving a portfolio into a company can no longer rely on it applying automatically. For a transfer in 2026/27, the claim deadline is 31 January 2029.

The UK's residence-based regime started on 6 April 2025. The old domicile and remittance basis rules ended. A UK resident is now generally taxed on worldwide income and gains as they arise.

None of this depends on 28 October. It is the starting point for your plans, with or without a Budget.

What to review before 28 October

Nothing here is a reason to hurry. These are the points we would run through calmly this week.

Do not rush irreversible decisions on rumours. Gifts into trust, share transfers, sales and restructures are hard to undo. A decision made because of something you read online, rather than because it suits your family or business, is rarely a good one. If you would not do it without the Budget, think twice about doing it because of it.

Be aware of transactions already in progress. Budget changes, especially anti-avoidance measures, can take effect from Budget day itself, with no transitional period. If you are part-way through a sale, a restructure, a property transfer or a significant gift, it is worth talking to an adviser now. We are not predicting any particular measure. The point is that timing can matter, and you will want to know where each transaction stands.

Use allowances you would use anyway. If you were already planning to use your annual exemptions, ISA allowance or pension contributions this tax year, there is no reason to wait for the Chancellor. Ordinary, sensible planning does not need a Budget to justify it.

Check who owns what. Spouses and civil partners each have their own allowances and reliefs, including the £2.5 million Business and Agricultural Relief allowance. Knowing how assets are split helps you act quickly if you later decide a change is needed. Our inheritance tax planning team can walk through this with you.

Add up your qualifying business assets. If a family business or farm approaches £2.5 million, the cap is relevant whatever happens on the day. Our article on business relief changes explains how it works.

Have your figures ready. The most useful thing you can do is be prepared. That means a current list of assets and liabilities, recent accounts, property values and loans, share ownership, and a note of any transaction in progress. When the detail is published, advice is only as quick as the information behind it.

Review your pension and your will. With unused pensions entering the estate from 6 April 2027, it is worth checking who receives your pension and in what order you plan to spend your assets. This is a settled change, so it is a sensible task whatever the Budget brings.

Gifts into trust, share transfers, sales and restructures are hard to undo.

What we will do on Budget day

On 28 October we will read the Budget documents as they are published. We will then post a plain-English summary of what changes for business owners, landlords and families. We will say what is confirmed, what is still a proposal and what it may mean for you. We will also update our guides to reflect anything that changes.

We would rather publish a clear summary a few hours later than a quick one that is wrong. Please bear that in mind if you are looking for detail on the evening itself.

FAQs

Will the Budget change the rules above?

Anything is possible, but the rules above are already legislated or announced, so they apply unless and until the law is changed. We do not predict what will be announced. We will update our guides if anything changes.

Should I make a gift, sell a business or restructure before the Budget?

Only if it already makes sense for you. Irreversible decisions taken on rumour can leave you worse off. If a transaction is already under way, speak to an adviser now so you understand how a change on Budget day could affect it.

Can Budget changes apply from the day itself?

Yes. Some measures, particularly anti-avoidance rules, can take effect from Budget day rather than from the start of a tax year. That is why we suggest reviewing transactions in progress before 28 October.

When will you publish your summary?

On Budget day, 28 October 2026. It will cover business owners, landlords and families, and we will update our guides afterwards.

When do Budget announcements actually take effect?

It varies. Some measures, usually anti-avoidance rules, apply from Budget day itself. Many take effect from the start of the next tax year on 6 April. Others are announced for consultation and only become law later through a Finance Act. Our summary will say which is which.

Are the inheritance tax bands still frozen?

Yes. The nil-rate band of £325,000 and the residence nil-rate band of up to £175,000 are frozen to 5 April 2031. Unless the law is changed, more estates will be drawn into inheritance tax as values rise.

Do the new property income rates from April 2027 still apply?

Yes. From 6 April 2027, rental profit in England, Wales and Northern Ireland will be taxed at 22%, 42% and 47%, and the Section 24 credit rises to 22%. This is already in the Finance Act 2026, so it applies unless Parliament changes it.

How does the £2.5 million Business and Agricultural Relief allowance work for a couple?

Each person has their own £2.5 million allowance for qualifying business and agricultural property, with 50% relief above it. Unused allowance can pass to a surviving spouse or civil partner, so a couple can shelter up to £5 million at 100%. Checking who owns what between you is worthwhile whatever the Budget brings.

Are pensions still coming into inheritance tax?

Yes. For deaths on or after 6 April 2027, most unused pension funds and death benefits will count as part of the estate. It is worth reviewing who receives your pension and the order in which you plan to spend your assets.

What should I have ready if I want advice straight after the Budget?

A current list of assets and liabilities, recent company accounts, property values and loans, share ownership, your latest tax return and a note of any sale, restructure, property transfer or gift in progress. With that to hand, we can tell you quickly whether anything announced affects you.

Talk to us before the Budget

If you have a sale, restructure, property transfer or family gift in progress, or you simply want to know where you stand, we can help. Our specialists review your position against the rules above and tell you what, if anything, is worth doing. To start, book a call for a free 20-minute conversation.

Sources

• Inheritance tax rates and the nil-rate band: https://www.gov.uk/inheritance-tax
• Freeze of the nil-rate band, residence nil-rate band and taper threshold to 5 April 2031 (Budget 2025 overview of tax legislation and rates): https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar
• Residence nil-rate band and taper: https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band
• Agricultural and business property relief changes from 6 April 2026: https://www.gov.uk/government/publications/changes-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-changes
• Inheritance tax on unused pension funds and death benefits from 6 April 2027: https://www.gov.uk/government/publications/inheritance-tax-unused-pension-funds-and-death-benefits/inheritance-tax-unused-pension-funds-and-death-benefits
• Business Asset Disposal Relief: https://www.gov.uk/business-asset-disposal-relief
• Capital gains tax rates: https://www.gov.uk/capital-gains-tax/rates
• Tax rates for property, savings and dividend income from April 2027: https://www.gov.uk/government/publications/income-tax-changes-to-tax-rates-for-property-savings-and-dividend-income/income-tax-changes-to-tax-rates-for-property-savings-and-dividend-income
• Incorporation relief claims from 6 April 2026: https://www.gov.uk/government/publications/capital-gains-tax-incorporation-relief-claims/capital-gains-tax-incorporation-relief-claims-process
• Foreign income and gains regime (helpsheet HS266): https://www.gov.uk/government/publications/foreign-income-and-gains-fig-regime-self-assessment-helpsheet-hs266/hs266-foreign-income-and-gains-fig-regime-2026

This article is general information, not advice. Tax rules change and their effect depends on your circumstances. We do not predict the contents of the Budget.