Key takeaways

  • Dividend tax rates (10.75%, 35.75%, 39.35%) and Capital Gains Tax rates (18% and 24%) do not change.
  • Savings and property income is taxed at 24%, 44% and 49% from 6 April 2027. The cash ISA limit stays at £20,000.
  • A single Securities Transfer Tax replaces Stamp Duty and SDRT in late 2027.
  • The BADR lifetime limit halves to £500,000 and a new 10% Founders' Relief covers up to £10 million of gains from 6 April 2027.
  • Technical fixes to SEIS, EIS and VCT rules come in Finance Bill 2026-27, mostly from 6 April 2027.

Budget 2026 for investors changes little on rates and a good deal on detail. Dividend tax and Capital Gains Tax rates stay where they are. Savings income gets a further two-point rise from April 2027. The details that matter are a new single tax on share transfers, a lower limit for Business Asset Disposal Relief, a new Founders’ Relief and technical fixes to the venture capital schemes.

What stays the same

ItemPosition from April 2027
Dividend tax rates10.75%, 35.75% and 39.35%, with the £500 dividend allowance
Capital Gains Tax rates18% and 24%
Cash ISA limit£20,000, the planned cut is dropped
Overall ISA allowance£20,000 a year
Personal Savings Allowance£1,000 basic rate, £500 higher rate, nil additional rate

The Treasury says the government supports saving through ISAs, the Personal Savings Allowance and the Starting Rate for Savings. See the cash ISA limit post.

Savings and property income

From 6 April 2027, savings income is taxed at 24% for basic rate, 44% for higher rate and 49% for additional rate taxpayers. Budget 2025 had already set rates two points lower. The government says 84% of income tax payers are unaffected and about half the revenue will come from the top 10% of households.

Investors who hold cash deposits or other interest-bearing investments outside an ISA are in scope. Dividends, which are taxed under separate rates, are not. Our post on savings and property income tax has the worked examples.

Securities Transfer Tax

A single, self-assessed Securities Transfer Tax will replace Stamp Duty and Stamp Duty Reserve Tax in late 2027. About 100,000 Stamp Duty and 1 billion SDRT transactions a year are affected. Individuals who deal off market and report themselves will need to register for the new digital system. The Exchequer cost is a small loss of £15 million in 2027 to 2028, then £30 million a year. See the Securities Transfer Tax post.

Business sales and founders

Investors who also run or have built businesses face two changes from 6 April 2027:

  • BADR. The lifetime limit halves from £1 million to £500,000 for qualifying disposals. The rate stays at 18%. See the BADR limit post.
  • Founders’ Relief. A new 10% Capital Gains Tax rate applies to up to £10 million of lifetime gains for qualifying founders of high-growth companies. A technical consultation closes on 30 November 2026, and legislation will follow in Finance Bill 2026-27. See Founders’ Relief.

A separate change to gift holdover relief also starts in April 2027. Read CGT gift relief reform for succession-planning gifts of shares.

SEIS, EIS and VCT

The Budget also brings technical fixes to the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) rules. Finance Bill 2026-27 will carry them. The amendment to the VCT relief withdrawal rules takes effect for relevant disposals of shares issued on or after 6 April 2026. The rest of the changes take effect from 6 April 2027.

HMRC’s tax information and impact note for these changes gives the detail. Investors using these reliefs should check their holdings against it.

Reporting of investment income

HMRC consulted over the summer on draft rules for banks, building societies and other institutions to report interest income data, and for merchant acquirers and payment facilitators to report card sales data. The measure comes into force on 6 April 2028. The Budget also says the government will consult on expanding third-party reporting for property income data. Our post on card sales data covers the business side.

A new ISA incentive for first-time investors

The Budget says the government will work with industry on a new ISA incentive for people investing in a stocks and shares ISA for the first time. No design has been published. The First Time Buyer ISA from April 2029 is a separate product. See the First Time Buyer ISA post.

What advisers should do

  1. Review non-ISA cash and bond holdings against the 2027 rates.
  2. Check ISA subscriptions before the end of the tax year, with the £20,000 limit unchanged.
  3. List clients who trade off market. They will need to register for the Securities Transfer Tax.
  4. Brief founder clients on BADR and Founders’ Relief, and the 30 November consultation.
  5. Review EIS, SEIS and VCT holdings when the Finance Bill detail is published.

Frequently asked questions

Do Capital Gains Tax rates change in Budget 2026?

No. The rates stay at 18% and 24%, but the BADR lifetime limit halves to £500,000 from 6 April 2027.

Does Budget 2026 change dividend tax?

No. Dividend tax rates of 10.75%, 35.75% and 39.35% and the £500 dividend allowance are unchanged.

When does the Securities Transfer Tax start?

HMRC says late 2027. It replaces Stamp Duty and SDRT, which stay in force for earlier transactions for four years.

Are EIS, SEIS and VCT changing?

Technical changes are planned. The VCT relief withdrawal fix applies to shares issued on or after 6 April 2026 and the other changes from 6 April 2027.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 1 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.