Autumn Budget 2026: What Might Change, and What It Could Mean for Expats

The Autumn Budget will be delivered on 28 October 2026. It is the first Budget presented by Chancellor John Healey, and the first under Prime Minister Andy Burnham, which alone makes it one to watch. The Office for Budget Responsibility will publish an updated forecast on the same day.

The measures discussed below are prospective and should not be treated as confirmed policy. The position will become clearer when the Chancellor delivers the Budget on 28 October 2026, with the detail and timing of any changes subject to the accompanying documents and legislation. Drawing on current commentary and reporting, we consider the areas where changes may arise, their potential implications for British expatriates and internationally mobile taxpayers with UK connections, and the planning considerations to review once the details are known.

A period of significant UK tax reform

This Budget follows substantial changes to the tax framework for internationally mobile individuals:

• The four-year Foreign Income and Gains (FIG) regime replaced the remittance basis from 6 April 2025, changing the treatment of qualifying overseas income and gains for eligible individuals.
• Residence-based inheritance tax rules took effect from 6 April 2025, potentially bringing overseas assets within the UK tax net for long-term UK residents, with exposure continuing for a period after departure.
• Most unused pension funds and pension death benefits will come within inheritance tax from 6 April 2027, subject to the applicable rules and exclusions.
• Making Tax Digital for Income Tax began its phased introduction from 6 April 2026, creating additional digital record-keeping and reporting obligations for affected taxpayers.

Our Budget review will consider whether further measures change the application of these reforms, introduce additional obligations or require existing advice to be revisited.

The fiscal context

Looking beyond headline rates

For pre-Budget planning, we recommend looking beyond possible rate increases. Our review will also consider changes to eligibility conditions, the scope of relief, commencement dates and transitional arrangements.

The practical question is not simply whether a tax rate changes, but whether the overall treatment of your income, assets or planned transactions changes.

Income tax

The continuing effect of frozen thresholds

The Personal Allowance and key income tax thresholds are set to remain frozen until 5 April 2031. As taxable income increases, this can bring more income into charge or into higher tax bands through fiscal drag, without an increase in headline rates. The position differs for certain income subject to Scottish income tax.

Our planning approach is to assess liabilities under the existing framework rather than assume the Budget will restore inflation-linked increases.

Considerations for expatriates: We recommend reviewing anticipated UK income alongside your residence position, entitlement to allowances and any relevant treaty provisions. This is particularly useful where retirement, a change in employment or a relocation is expected to alter your income profile.

The review should establish a baseline against which any Budget announcement can be assessed.

Capital gains tax

Looking beyond the headline rate

Press reports suggest that further capital gains tax rate increases have been ruled out, while emphasising the absence of official confirmation. Other reforms remain possible.

The main capital gains tax rates for individuals are currently 18% and 24%, depending on taxable income and the nature of the gain. Different treatment can apply to certain qualifying disposals. Our Budget review will consider rates alongside reliefs, qualifying conditions and effective dates.

Considerations for expatriates: Non-UK residence does not generally take disposals of UK land and property outside the UK capital gains tax framework. Non-residents normally need to report relevant disposals within 60 days of completion, including where no tax is payable, and pay any tax due within the applicable deadline.

If you are considering a disposal, we recommend reviewing the position before entering into a binding contract. The review should address the proposed transaction, residence history, available reliefs and any overseas advice required, not simply the possibility of a UK rate change.

Read our guidance on the 60-day CGT reporting deadline.

Inheritance tax

Reviewing exposure and succession plans

Professional commentary identifies agricultural and business property reliefs as areas of continuing policy attention, although the prospect and direction of further changes remain uncertain.

For internationally mobile families, the existing residence-based framework already requires attention. Long-term UK residence can bring overseas assets within inheritance tax, and that exposure can continue for up to ten tax years after departure, depending on residence history and the applicable rules. The inclusion of most unused pension funds and pension death benefits from 6 April 2027 adds a further consideration to retirement and succession planning.

Planning considerations: We recommend reviewing residence history, asset ownership, wills, trust arrangements and pension death-benefit nominations as a coordinated exercise.

For families with farms or businesses, the review should also identify where the existing succession plan depends on particular reliefs. Potential Budget changes can then be assessed against that plan, rather than becoming the sole reason for making a gift or restructuring ownership.

Read more in Pensions, Inheritance Tax and the 2027 Change.

The FIG regime

Eligibility and relocation planning

The four-year FIG regime is available to qualifying individuals within their first four UK-resident tax years following at least ten consecutive tax years of non-UK residence. Relief must be claimed, and eligibility depends on the individual's circumstances and residence history.

Our Budget review will look for changes affecting eligibility, the scope of relief, claims and transitional arrangements. We would not build a relocation plan around an assumed extension or relaxation of the rules.

Considerations for arrivals and returning expatriates: Establish your position under the current framework first. This includes reviewing your residence history, proposed arrival date, expected income and gains, and the advice needed in the country you are leaving.

For those approaching the end of their eligibility period, we recommend a forward-looking review rather than waiting until the final year to consider the next stage.

Property

Acquisition, ownership and disposal

The High Value Council Tax Surcharge is an existing announced measure, not a new Budget prediction. It is due to apply from April 2028 to high-value residential property in England, using a £2 million threshold.

The government's consultation has also explored whether an additional premium could apply to non-UK-resident owners. This should be distinguished from the core announced surcharge and not treated as a confirmed additional charge.

Considerations for overseas owners: We recommend assessing UK property across its full ownership lifecycle, rather than focusing on one proposed charge. A review can address your acquisition plans, ownership structure, financing, intended use, rental activity and eventual disposal or succession.

Our Budget analysis will identify whether any announcement changes the assumptions underlying those arrangements.

Read our explainer on the High Value Council Tax Surcharge.

Business owners

Distributions, exits and restructuring

There is currently consultation activity concerning company distributions, with potential implications for share buybacks, business exits and demergers.

For internationally mobile business owners, our review will therefore extend beyond headline tax rates to the proposed steps of a transaction and its cross-border implications.

If you are considering a dividend, share buyback, restructuring or sale, we recommend obtaining advice before the arrangements become binding. Any Budget announcement can then be assessed against the proposed transaction, including whether transitional provisions or revised effective dates require a change of approach.

Pensions and savings

Separate existing changes from speculation

Pensions

The inheritance tax changes taking effect from 6 April 2027 should already form part of retirement and estate-planning discussions. They are not dependent on a fresh announcement in this Budget.

We do not recommend making a substantial pension withdrawal solely in response to speculation. Where a withdrawal is already planned, we can review the UK tax position and identify cross-border matters requiring coordinated advice.

The starting point should be your retirement needs, intended use of the funds and wider estate arrangements.

Cash ISAs

The reduction in the annual cash ISA subscription limit to £12,000 for individuals under 65 from 6 April 2027 has already been announced. It should therefore be distinguished from possible new Budget measures.

Individuals who become non-UK resident can generally retain existing ISAs and their UK tax advantages, but cannot normally make further subscriptions, subject to limited exceptions.

If you are moving abroad, we recommend obtaining advice on how the destination country treats your savings and investments rather than assuming the UK treatment will apply there.

Practical preparation before the Budget

Our recommendation is to prepare by understanding your existing position, not by trying to anticipate every announcement.

A focused review can help you:

• establish your residence position for the current and forthcoming tax years;
• identify expected income, disposals and pension decisions;
• review inheritance tax exposure and succession arrangements;
• identify reliefs on which your current plans depend;
• assess transactions already underway and any binding deadlines; and
• determine which decisions should be revisited after the Budget.

Where a decision is already required for commercial or personal reasons, we can help assess it under the current rules and explain the uncertainties. Where there is no immediate deadline, waiting for the published detail may provide a firmer basis for advice.

The objective is informed preparation, not action driven by speculation.

How we can help

Following the Budget, we will publish an analysis focused on expatriates and internationally mobile individuals, distinguishing new announcements from existing measures and explaining relevant effective dates and practical next steps.

If you are considering a UK property sale, pension withdrawal, business transaction, relocation or changes to your estate arrangements, we can review your UK tax position and identify the matters to revisit once the Budget documents are available.

Contact our team to discuss your circumstances.

This article provides general information based on legislation, published government announcements and public commentary available as at 22 October 2026. Possible future changes are not confirmed policy. The application of existing rules and any new measures will depend on their terms, effective dates and your circumstances. This article does not constitute personal tax advice. Obtain advice tailored to your position before taking action.