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Autumn Budget Deepens Tax Trap for HENRYs, with Marginal Tax Rate on Savings Hitting 64%

The government kept the £20,000 cash ISA limit while raising taxes on savings and property income, a move advisers say will hit higher earners hardest.

  • On October 28, 2026, British Chancellor John Healey announced the Labour government's Autumn Budget, introducing significant changes to business rates, taxation, and capital allowances aimed at fiscal consolidation and household support.
  • Reversing previous policy, the government maintained the £20,000 Cash ISA annual allowance for individuals under 65, cancelling the planned reduction to £12,000 set for April 2027.
  • From April 1, 2027, the government will increase Small Business Rates Relief eligibility thresholds for retail, hospitality, and leisure properties; the National Living Wage for workers over 21 rises to £13.21 per hour, up 50p from £12.71.
  • Revenue generation measures include increasing the bank surcharge to 6 percent, raising combined corporation tax to 31 percent, and hiking the Electricity Generator Levy to 55 percent until March 2028.
  • Communities will receive £432 million to tackle homelessness, alongside the rollout of a Good Growth Fund to align public financial institutions and private capital behind catalytic regeneration projects across England.
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Inside Housing broke the news on Monday, November 2, 2026.
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