Budget announcements and key implementation dates: What advisers need to know

12 June 2026

Successive Budget announcements have set out a wide range of tax and pension changes that will be introduced over the remainder of the decade. While many headlines focus on what is changing, the more complex challenge for advisers is understanding when each change takes effect and how the staged implementation affects planning decisions for clients. This article provides a practical timeline of upcoming changes, highlighting the areas most likely to impact pension advice, retirement planning and holistic wealth strategies.

Article last updated 12 June 2026.

From April 2026: The first wave of changes

A number of significant reforms come into effect from 6 April 2026, affecting dividends, inheritance tax reliefs and pensions.

Dividend and Capital Gains Tax

From April 2026, dividend tax rates for both basic‑ and higher‑rate taxpayers increase by 2 percentage points, raising the importance of tax‑efficient portfolio structuring for income‑focused clients. At the same time, the rate of Capital Gains Tax for Business Asset Disposal Relief (BADR) rises from 14% to 18%, increasing the cost of disposals for business owners and entrepreneurs considering exits.

Inheritance Tax Relief changes

Business Relief (BR) and Agricultural Property Relief (APR) are restricted from April 2026:

•    A £2.5 million allowance applies to 100% relief
•    Assets above this threshold attract 50% relief
•    The allowance can be transferred between spouses or civil partners, creating a potential combined allowance of £5 million
•    Shares quoted on markets designated as “not listed”, such as AIM, no longer qualify for full relief

These changes significantly alter the role of business and AIM holdings in IHT mitigation strategies.

Pensions

The State Pension age begins its phased increase to 67 for those born between 6 April 1960 and 5 April 1961, reinforcing the need to revisit retirement timelines and income‑bridging strategies.

Phase	Who this applies to	State Pension age	When this happens	What this means
Change begins	People born between 6 April 1960 and 5 April 1961	Gradually increasing to 67	From 6 April 2026	The age starts to increase. Your exact pension age depends on your date of birth
Transition period	People born within this date range	Between 66 and 67	From April 2026 onwards	The increase is gradual, not immediate. People will reach pension age at different times

From April 2027: Estate planning and ISA reform

Further changes take effect from 6 April 2027, many of which directly affect pension planning and intergenerational advice.

Pensions and Inheritance Tax

Unused pension pots will now form part of an individual’s estate for IHT purposes, marking a fundamental shift in how pensions are treated on death.

For advisers, this represents one of the most material changes in recent years:

•    Pension wealth planning must be fully integrated into estate planning
•    Death‑benefit and beneficiary strategies will need reassessment
•    Clients previously relying on pensions as an IHT shelter may need alternative solutions

ISAs

New eligibility and contribution rules are introduced:

• A mandatory National Insurance number is required (unless ineligible)
• A £12,000 Cash ISA limit applies for savers under age 65

Income and corporate taxes

Savings and property income tax rates increase by 2%, while personal allowances must be allocated first against non‑savings income, limiting tax‑planning flexibility.

From April 2028: Retirement age and property related taxes

Changes effective from 6 April 2028 affect both retirement access and broader wealth planning.

Pensions

The minimum pension access age rises from 55 to 57, reinforcing the importance of early retirement planning and alternative funding strategies for clients intending to retire before State Pension age.

Income and Capital Gains

The temporary freezes on the dividend allowance, personal savings allowance and CGT annual exempt amount come to an end, potentially increasing tax liabilities for many clients.

Council Tax

A new high‑value council tax surcharge is introduced:

• Starting at £2,500 annually on properties valued at £2 million
• Rising to £7,500+ on properties over £5 million

This may influence decisions around property ownership structures and succession planning.

From April 2029: Salary sacrifice under review

From 6 April 2029, the long‑standing exemption from National Insurance on pension salary sacrifice contributions is partially withdrawn.

• Only the first £2,000 of salary‑sacrificed contributions remain NI‑free
• Contributions above this are subject to employer and employee NI

This change alters the attractiveness of salary sacrifice for higher earners and may affect employer pension arrangements.

From April 2030: The end of multiple tax freezes

By 6 April 2030, several temporary freezes come to an end:

•    Income tax bands and personal allowances
•    Inheritance tax nil‑rate bands
•    National Insurance thresholds

While future Budgets may adjust these measures, advisers should be prepared for a materially different tax environment compared with the post‑freeze period.

What this means for advisers

The staggered implementation of Budget measures creates both risk and opportunity:

•    Clients may underestimate how future changes alter long‑term outcomes
•    Planning windows still exist for pensions, estate planning and business‑owner strategies
•    Ongoing reviews will be essential as each phase takes effect

Above all, advisers will need to demonstrate forward‑looking advice, showing not just today’s suitability but how strategies remain appropriate as legislation evolves.

More insights for advisers

6 mins

9 June 2026

Weekly Digest: Pop or pause in stock markets?

Markets turned unsettled after a red‑hot run, sparking talk of a top. We still see no case to cut equities, periods like this can bring new opportunities.

Weekly Digest: Pop or pause in stock markets?

Traffic And Data Routing Concept With Branching Paths And Moving Signals High-Res Photo

3 mins

8 June 2026

Are you betting your MPS on mega‑cap tech?

Passive investing is often viewed as a low-risk, diversified approach, but today’s market structure challenges that assumption. With a growing concentration in mega-cap technology companies, index-tracking MPS may introduce unintended risks and limit responsiveness to market shifts. This article explores the implications for advisers and highlights the role of active management in navigating an increasingly uncertain investment landscape.

Are you betting your MPS on mega‑cap tech?

10 mins

3 June 2026

Monthly Digest: Disbelief

We caution against too much caution, as we weigh up the risks posed by the Iran war and the growth of AI.

Monthly Digest: Disbelief

Aerial view oil ship tanker waiting on the sea for load or unload oil from refinery.

3 mins

28 May 2026

Geopolitics, energy and the shifting foundations of global growth

Conflict between major global players has reinforced a long‑standing investment reality: economic growth remains anchored to energy. The latest disruption highlights Europe’s energy vulnerability, the limits of conventional defensive assets and the growing importance of global diversification. These dynamics point to lasting implications for asset allocation as geopolitical alignment continues to shift.

Geopolitics, energy and the shifting foundations of global growth

Access our insights and events hub

Let's talk

Ready to start a conversation? Please complete our enquiry form, and our distribution team will be in touch.

Enquire

The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.

Budget announcements and key implementation dates: What advisers need to know

From April 2026: The first wave of changes

Dividend and Capital Gains Tax

Inheritance Tax Relief changes

Pensions

From April 2027: Estate planning and ISA reform

Pensions and Inheritance Tax

ISAs

Income and corporate taxes

From April 2028: Retirement age and property related taxes

Pensions

Income and Capital Gains

Council Tax

From April 2029: Salary sacrifice under review

From April 2030: The end of multiple tax freezes

What this means for advisers

More insights for advisers

Weekly Digest: Pop or pause in stock markets?

Are you betting your MPS on mega‑cap tech?

Monthly Digest: Disbelief

Geopolitics, energy and the shifting foundations of global growth

Let's talk

Welcome to Rathbones Investment Management Limited Adviser Site