There were a number of reforms to tax-efficient investments mentioned in the speech and subsequent Budget documents, but headlines were quickly grabbed by the announcement of a new Pension Tax Allowance.
This will be available from April 2027 to April 2030 to pensioners whose income is at or below the full new State Pension to ensure that they won’t be pulled into paying tax by pension increases. This will work on a taper system that keeps pensioners protected, but ensures higher earners still pay.
The previous cut to Cash ISAs for under 65s was also dropped, so the annual tax-free limit will remain at £20,000.
The Government will, instead, explore a new incentive for people opening a Stocks and Shares ISA for the first time.
A new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029.
It pays a 25 per cent bonus on homes worth up to £450,000, capped at £20,000.
From 29 October 2026, the LISA withdrawal charge for buying above the price cap falls to 20 per cent.