The Chancellor presented the UK Budget on Wednesday 28 October 2026. This page sets out, in the documents' own terms, the announced measures that concern residence, inheritance tax, pensions, capital gains and overseas income and property, with the effective dates the documents give and a link to each.
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Measures announced on 28 October 2026
| Measure | What the document says | Effective date stated | Document |
|---|---|---|---|
| Income tax rates on property income | The government will introduce legislation in Finance Bill 2026-27 to increase the rates of income tax applicable to property income. From 2027 to 2028, the property basic rate will be 24%, the property higher rate will be 44%, and the property additional rate will be 49%. These rates will apply across England, Wales and Northern Ireland. HMRC's tax information and impact note lists the property trust rate at 49%. | 6 April 2027 | HMRC, Budget 2026: Overview of tax legislation and rates, measure 1.2 |
| Income tax rates on savings income | The government will introduce legislation in Finance Bill 2026-27 to increase the rates of Income Tax applicable to savings income. From 2027 to 2028, the savings basic rate will be 24%, the savings higher rate will be 44%, and the savings additional rate will be 49%. HMRC's tax information and impact note lists the savings trust rate at 49%. These rates apply across the UK. | 6 April 2027 | HMRC, Budget 2026: Overview of tax legislation and rates, measure 1.1; HMRC, Income Tax: changes to tax rates for property and savings income |
| Inheritance tax: liabilities in trust arrangements | The government will amend the inheritance tax rules to clarify when liabilities relating to trust property may reduce the value of assets for inheritance tax purposes, align the treatment of liabilities affecting trust property with personal liabilities, and strengthen anti-avoidance provisions. Legislation is in Finance Bill 2026-27. | Deaths and other chargeable events occurring on or after 28 October 2026 | HM Treasury, Budget 2026, Policy decisions: Personal taxation; HMRC, Overview of tax legislation and rates, measure 1.26 |
| Pension and lump sum death benefits: the two-year rule | Legislation in Finance Bill 2026-27 will remove the two-year rule for pension and lump sum death benefits. Tax-free pension and lump sum death benefits will no longer become taxable solely because they are paid more than two years after the pension scheme administrator first knew, or could reasonably have been expected to know, of the member's death. | Payments made on or after 28 October 2026 | HMRC, Overview of tax legislation and rates, measure 1.18 |
| Pensions access: definition of terminal illness | Legislation in Finance Bill 2026-27 will allow a serious ill-health lump sum to be paid where the pension scheme member can be reasonably expected to live for less than a year. The definition of a registered medical practitioner will be amended so that a medical practitioner based outside the UK can provide medical evidence of a terminal diagnosis if the scheme member is living in the country where the practitioner practises medicine. | The date of Royal Assent to Finance Bill 2026-27 | HMRC, Overview of tax legislation and rates, measure 1.16 |
| Capital Gains Tax: exit charges for temporarily migrating trusts | Legislation in Finance Bill 2026-27 will provide an administrative easement to the Capital Gains Tax 'exit charge' that otherwise applies when a trust ceases to be resident in the United Kingdom. An exit charge will not apply when a trust becomes UK resident because one of its trustees moved to the UK, and it ceases to be UK resident later that year or the following year. | 28 October 2026 | HMRC, Overview of tax legislation and rates, measure 1.28 |
| Investors in US Limited Liability Companies and other reverse hybrids | The government will create a mechanism to provide double taxation relief for income received by investors from certain foreign entities where relief is currently unavailable. HMRC describes it as a new domestic foreign tax credit mechanism, with a technical consultation on the policy detail to follow before legislation. | HMRC: claims for the new credit from early 2028. HM Treasury: legislation to be included in Finance Bill 2027-28. | HM Treasury, Budget 2026, Policy decisions: Business and enterprise taxation; HMRC, UK resident individual members of LLCs and other reverse hybrids: summary of responses |
How Le Strand uses this
Le Strand records published rule changes with their dates so that each family's advisers have the official documents in front of them. Independent UK tax advisers and US professionals deliver the advice; Le Strand coordinates their answers into the family's Landing Plan.
Frequently asked questions
When was the UK Budget 2026 presented?
The Chancellor presented the Budget on Wednesday 28 October 2026.
Where are the official Budget documents?
HM Treasury and HMRC publish them on GOV.UK. Each measure on this page links to its document.
What are the UK savings income tax rates from 6 April 2027?
HMRC states that from 2027 to 2028 the savings basic rate will be 24%, the savings higher rate 44% and the savings additional rate 49%, with the savings trust rate at 49%. The changes take effect from 6 April 2027 and apply across the UK.
Documents
- Budget 2026 document, HM Treasury, published 28 October 2026 (HTML version: Budget 2026)
- Budget 2026 in full, HM Treasury, published 28 October 2026
- Budget 2026: Overview of tax legislation and rates (OOTLAR), HM Revenue & Customs, published 28 October 2026
- Income Tax: changes to tax rates for property and savings income, HM Revenue & Customs, tax information and impact note, published 29 October 2026
- UK resident individual members of LLCs and other reverse hybrids: summary of responses, HM Revenue & Customs, consultation first published 10 June 2026, outcome published 28 October 2026
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