Budget changes that will be coming to Voyant:
Overview
Freeze on various tax bands and allowances extended until April 2031.
Increased basic and higher dividend tax rates from April 2026.
Increased basic, higher and additional savings tax rates from April 2027.
VCT tax relief reducing to 20% from April 2026.
Limit on National Insurance exemption for salary sacrifice pension contributions from April 2029.
BPR/APR exemption can be transferred to spouse/legal partner if unused on death from April 2026.
BPR/APR exemption increased to £2.5 million from April 2026.
- New property tax rate, rates the same as savings income from April 2027.
- Restriction on how much can go into a Cash ISA for under 65s from April 2027 (£12,000).
- Scottish budget: increase to Starter and Basic rate tax bands for 2026/27 budget, Higher, Advanced and Top rate thresholds frozen to 2028-2029.
Tax Rates
- From April 2026 basic and higher rate dividend tax rates will increase to 10.75% and 35.75% respectively.
- From April 2027 basic, higher and additional savings tax rates will increase to 22%, 42%, 47% respectively.
Allowances and tax bands frozen to April 2031
- Personal allowance £12,570
- Personal savings allowances £1,000, £500, £0
- Starting Rate Band £5,000
- Dividend allowance £500
- Income tax brackets (England, Wales & NI) £37,700, £125,140
- Primary threshold £12,570
- Upper earnings limit £50,270
- Employer NIC secondary threshold (used in salary sacrifice) £5,000
- ISA contribution allowance £20,000 (except for cash ISAs for under 65s)
- JISA/child trust contribution allowance £9,000
- Lifetime ISA contribution allowance £4,000
- Nil Rate Band £325,000 then escalates by Nil Rate Band Escalation setting.
- Residential Nil Rate Band £175,000 then escalates by CPI setting.
- Residential Nil Rate Band taper threshold £2,000,000 then escalation by IHT Property Exemption Escalation Rate setting.
After the freeze, these tax bands and allowances escalate by the plan's Default Tax Table Assumption found in Plan Settings > Inflation/Growth, unless specified otherwise above.
Other changes relating to allowances
BPR/APR exemption can be transferred to spouse/legal partner if unused on death from April 2026.
BPR/APR exemption increased to £2.5 million from April 2026.
Changes relating to investments and pensions
VCT tax relief reducing to 20% from April 2026.
Limit on National Insurance exemption for salary sacrifice pension contributions from April 2029.
Budget changes coming in January release:
The following changes are coming in the January release:
- Freeze on various tax bands and allowances extended until April 2031
- Increased basic and higher dividend tax rates from April 2026
- 2029 Limit on Salary Sacrifice to £2,000 deduction. Affects both employment NIC and Employer rebate on pension contributions.
- Added BPR/APR Allowance Carry Forward field in CarryOver Assumptions.
- BPR and APR threshold increases to £2,500,000 from 2026 onwards, with any unused allowance transferable to a surviving spouse or civil partner for 'property' types in this release, working on applying the transferrable BPR for unwrapped BPR assets in a following release.
- VCT tax relief reducing to 20% from April 2026
The remainder of changes will be coming in the February release subject to testing.