The Budget announced on 28^th October 2026 includes changes that could affect your savings, first-home deposit, retirement income or business.

Below is a summary of the key announcements most relevant to your Financial Planning. 

Higher tax on savings and rental income from 6^th April 2027

From 6^th April 2027, taxable savings income will be taxed at 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers across the UK. The same rates will apply to property income in England, Wales and Northern Ireland.

These increases are in addition to the two percentage point increases announced in the 2025 Budget for the same date. The government says 84% of income taxpayers will not be affected. Dividend tax rates are unchanged.

ISAs and first-time buyers

• Cash ISAs: the limit remains £20,000 from 6^th April 2027. The planned reduction to £12,000 for under-65s will not go ahead.
• First Time Buyer ISA: this replaces the Lifetime ISA for new savers from 6^th April 2029. Savers can contribute up to £4,000 a year. A 25% government bonus, capped at £20,000, is paid when funds are withdrawn for a qualifying first home worth up to £450,000. There is no upper age restriction. Existing Lifetime ISA holders can continue under the current rules.
• Lifetime ISA withdrawals: from 29^th October 2026, first-time buyers purchasing a home above the £450,000 limit can withdraw their funds with a 20% charge, reduced from 25%.
• First-time investors: the government will work with the industry on a new incentive for first-time stocks and shares ISA investors. Details are not yet confirmed. 

Pensions and retirement 

• State Pension increases: until 5^th April 2029, the State Pension will rise each year by the highest of 2.5%, inflation or earnings growth (the triple lock). From 6^th April 2030, the adjusted Triple Lock will apply, so the State Pension rises each year by the highest of 2.5%, inflation, or the amount required to maintain its value relative to earnings as reached in April 2029.
• Pension Tax Allowance: from 6^th April 2027 to 5^th April 2030, pensioners whose total income is no more than the full new State Pension will pay no income tax. This applies automatically. It does not increase the Personal Allowance for all pensioners.
• Inherited pensions: the two-year rule is removed for payments made on or after 28^th October 2026. Beneficiaries will no longer be taxed solely because tax-free pension or lump sum death benefits are paid more than two years after the member’s death.

No change was announced to pension tax relief or the tax-free lump sum in the Budget document. Unused pension funds are still expected to fall within inheritance tax from 6^th April 2027, based on the earlier announcement.

Capital gains and business owners 

• Business Asset Disposal Relief: from 6^th April 2027, the lifetime limit for gains taxed at the reduced 18% rate falls from £1m to £500,000.
• Founders’ Relief: from 6^th April 2027, qualifying founders of high-growth, innovative companies can pay 10% capital gains tax on up to £10m of lifetime gains. The detailed design is subject to technical consultation.
• Share schemes: from 6^th April 2027, Company Share Option Plan will be known as EMI2. The individual option limit rises to £120,000 and the exercise period extends to 15 years. Technical changes will also make Venture Capital Trusts, EIS and SEIS easier to use.
• Stamp duty on shares: a new Securities Transfer Tax will replace Stamp Duty and SDRT from late 2027. 
• Trading allowance: the income tax trading allowance increases from £1,000 to £3,000 from 6^th April 2027. 

Household bills and cost of living 

• £100 Household Energy Payment: up to 20 million households in council tax bands A to D in England will receive this through the council tax system from January 2027. The total cost is £2.6bn.
• VAT on household electricity: the rate falls from 5% to 0% from 1^st October 2026 to 1^st July 2027. This is expected to reduce the April 2027 price cap by around £50. Ofgem has also been asked to remove gas standing charges, currently around £108 a year, by the end of 2027 or as soon as possible afterwards. 
• Fuel duty: the 5p cut continues, and the planned inflation increase is delayed until 1^st July 2027. 
• Bus fares: fares in England outside London will be capped at £2 for a year from 1^st January 2027. 
• Food prices: from 26^th November 2026, import tariffs are suspended on 101 food products until 31^st December 2028. This sits alongside an earlier package suspending tariffs on 135 food products from 21^st June 2026.
• National Living Wage: the rate rises by 3.9% to £13.21 an hour from 1^st April 2027. 
• Mileage rates: the tax-free rate for the first 10,000 business miles rises to 55p from 6^th April 2026. The rate for miles above this rises to 35p from 6^th April 2027. 
• Student loans: interest on Plan 2 and Plan 3 loans is capped at 6% from 1^st September 2026 to 31^st August 2027.

What stays the same 

The main rates of Income Tax, National Insurance and VAT are unchanged.

Income Tax thresholds and Inheritance Tax allowances are set to remain frozen until 5^th April 2031. As incomes rise, more taxpayers will move into higher tax bands.

From April 2029, self-assessment taxpayers who make payments on account will make smaller, more regular payments during the year. From July 2029, HMRC will also be able to recover lower-value tax debts directly from the bank accounts of people who can afford to pay but repeatedly fail to do so.

In Summary

The Budget brings changes to savings and rental income tax, pensions and business reliefs, alongside support with household costs. However, cash ISA limits remain unchanged, with no changes announced to pension tax relief or tax-free lump sums. Some measures still await legislation or further detail.

It remains important to take a calm, considered approach to your Financial Planning when considering changes announced in a Budget. For our clients, we will review the implications for your Financial Plan and recommend adjustments where appropriate, keeping your long-term objectives at the heart of any decisions.

If you have any questions or would like to discuss how the Budget could affect your plans, please get in touch. We’re happy to help.

In September, Eldon welcomed Katie Watts as a new addition to our paraplanning team. We are excited to have Katie join our team and can’t wait to see what she achieves.

Here is a short introduction from Katie:

“After graduating from Newcastle University in 2011 with an honours degree in Law, I spent several years working in the Revenues and Benefits Department of a Local Authority where I developed an understanding of the state benefits system and provided advice and guidance to benefit claimants. I then moved into financial services in 2018 and have since worked for two different IFA firms before joining Eldon in 2026. This has given me the opportunity to work with a wide variety of clients, each with their own circumstances, goals and planning needs. I enjoy the detail of problem-solving involved in paraplanning, but also the human side of financial planning – understanding what matters most to clients and putting the right solutions in place for them.

I completed my Diploma in 2022 and I am now working towards the Advanced Diploma and Chartered Status.

Outside of work I’m Mum to my beautiful daughter, and when I do get some spare time, it’s usually spent with family and friends. I also enjoy cooking, eating out, reading, and have recently rediscovered an enthusiasm for crochet.

Professional Achievements:

• Diploma in Regulated Financial Planning
• Certificate in Discretionary Investment Management”

More than £119 billion held in fixed-rate savings accounts are due to mature before the end of 2026. If some of that money is yours, now is a good time to think about what you want to do with it next. 

When your fixed-rate account matures, the interest rate you have been receiving will usually come to an end. Depending on the terms of your account, your provider may automatically move your money into another savings account, which could pay a lower variable rate. 

Research commissioned by Skipton Building Society suggests that, in some cases, this could result in returns falling by almost half. This will not apply to every saver, but it highlights why it is worth checking what will happen to your money before your fixed term comes to an end. 

This is especially important given that returns on the top fixed-rate savings accounts are at their highest level in years, with some paying up to 5.12% at the time of writing. Therefore, taking the time to review your options could help you make sure your savings continue to work as hard as possible for you. 

Why it pays to act early 

If you find it easy to put off making a decision about your savings, you are not alone. In Skipton Building Society’s research, 39% of people said they rarely or never move their savings, while 31% said they had experienced what was described as “money-moving paralysis”. 

However, reviewing your options doesn’t have to be complicated or time-consuming, and the process of switching savings accounts is more straightforward than you may think. The important thing is to understand what is going to happen and make an active decision, rather than allowing your money to move automatically without checking the new terms. 

Your maturity checklist 

As your maturity date approaches, it is worth checking: 

• When your fixed-rate deal ends. 

• What interest rate will apply once the fixed term has ended. 

• Whether your provider will automatically move your money into another account. 

• What other rates are available elsewhere 

• Whether there is a deadline for choosing a new account or withdrawing your money. 

• Whether your current arrangements still provide the level of return, access and flexibility you need. 

A short review before your account matures could help you avoid leaving your money somewhere that no longer suits your circumstances. 

Look beyond the interest rate 

The end of a fixed-rate deal can also be a useful opportunity to think about what you are actually saving the money for. The interest rate is important, but it is not the only consideration. You should also think about: 

• When you are likely to need access to the money. 

• How important easy access is to you. 

• Whether you have other savings available for unexpected expenses. 

• How your savings fit alongside your wider financial objectives. 

For some people, keeping their money in cash will remain the most appropriate option. For others, particularly those with longer-term goals, it may be worth considering whether other options could form part of their financial plan. 

There is no one-size-fits-all answer, and the right approach depends on your circumstances, your goals, and when you expect to need the money. 

If you are unsure what to do when your fixed-rate savings account matures, speaking to one of our team can help you understand the options available and how they could fit into your wider financial plans. We would be happy to help you consider your next steps.

Global markets experienced some fluctuations the past few weeks following the US attacks on Iran, with oil prices seeing the most noticeable increase, and it is likely that markets will remain volatile as the situation evolves.

Rising geopolitical tensions often lead to short-term movements in global financial markets, as investors weigh the potential implications for energy supply, oil prices, and inflation. While sudden fluctuations can feel unsettling, they are typically temporary responses to unfolding events rather than lasting changes to the long-term outlook for investments.

It’s important to remember that short-term movements are a normal part of the investment process; well-diversified portfolios built with resilience in mind are designed to weather such storms by spreading investments across a range of regions, sectors, and asset types.

History shows that markets have repeatedly navigated uncertainty, recovered from disruptions, and continued to progress as conditions stabilise. Therefore, reacting quickly to short-term market movements often does more harm than good. We encourage you to keep calm amid the uncertainty. Maintaining a long-term perspective has often proven to be the more effective approach for investors seeking sustainable growth over time.

As always, we are monitoring developments closely and if we believe any action is needed before your next scheduled review, we will contact you.

In the meantime, if you have questions or would like to talk things through, please reach out. We are here to provide guidance, reassurance, and support every step of the way.

Members of the Eldon team were delighted to attend the High Sheriff Youth Awards last month, celebrating young people across County Durham.

Organised by Point North (the community foundation for County Durham and Tees Valley), and supported by the High Sheriff of Durham, the Awards are presented each year to recognise the extraordinary contribution of local community groups. Winning groups are awarded funds to continue supporting young people across County Durham, Darlington, Hartlepool, and Stockton.

This year, Hardwick Hall Hotel in Sedgefield was transformed into a scene straight from Willy Wonka’s Chocolate Factory, truly bringing the magic of the evening to life. A total of £35,000 was awarded across twelve groups, helping them to continue with, and strengthen, their work. Many groups also spoke of using some of the funds to provide enriching residential trips and experiences, things which would simply be too costly for them to offer otherwise.

This year’s High Sheriff of Durham, Michael Poole, highlighted the importance of the groups’ work and continuing to support them:

“The judging panel were certainly tested by the extremely high calibre of the applications received. The awards aren’t about being perfect. They’re about stepping up, showing kindness, helping, and making a difference. That’s exactly what young people across this county are doing – supported every step of the way by incredible organisations that give them the space and guidance to thrive. What you’re all doing is what makes County Durham a stronger, kinder and more connected place.”

As an ongoing supporter of Point North, we were honoured to attend this year’s Awards and the team left with a real sense of pride in our communities (as well as far too much chocolate).

HM Revenue & Customs (HMRC) has updated its process for issuing tax refunds to employees and pensioners under PAYE. If you are due a refund, you may no longer receive it automatically and may need to claim it.

Previously, when HMRC issued a P800 tax calculation showing a refund was due, they would automatically send a cheque in the post if you did not claim the refund online within 21 days.

This process has now changed. HMRC has stopped issuing automatic cheques for most P800 refunds. If you receive a calculation showing you are owed money, you must now take action to claim it. If no claim is made, the money will remain with HMRC.

The Quickest Way to Claim

HMRC advises that the fastest way to check if a refund is due and to claim it is via the HMRC App:

1. Open the HMRC App and tap the ‘Pay As You Earn (PAYE)’ section.
2. If a refund is due, you’ll see a tax calculation and a green ‘Claim’ button.
3. Tap the button to submit your claim.
   • Bank Transfer: Funds are typically paid directly into your bank account within 5-10 working days.
   • Cheque: If you prefer a cheque, it can take up to 6 weeks to arrive.

If You Don’t Use Online Services

If you do not have access to the HMRC app or online account, you can still claim your refund using the instructions on your P800 letter.

You can claim via the government website here (you will need your P800 reference number and National Insurance number), or by calling HMRC directly.

Check Your Calculation Carefully

Before claiming any refund, it’s important to review your tax calculation to ensure the figures are correct. Common areas where errors occur include:

• Savings Interest: HMRC receives data directly from banks, but this can sometimes be incorrect or duplicated. Check that the interest figure matches your records and excludes any interest earned in ISAs (which is tax-free). If you hold joint accounts, check that only your share (usually 50%) is included.

• Pension Contributions: If you are a higher or additional rate taxpayer, check that your personal pension contributions are accurately reflected. Relief is not always applied automatically to contributions made outside of salary sacrifice schemes.

• Gift Aid: Ensure any charitable donations made under Gift Aid are included, as you may be entitled to additional tax relief.  

If you receive a tax calculation from HMRC and would like us to review it, please don’t hesitate to get in touch with one of the team.

Experienced sailors don’t wait for rough seas to think about how they’ll respond. They prepare in calm conditions, knowing storms are inevitable. Investors face the same reality. Market volatility is not a possibility, it’s a certainty, and preparation determines whether you stay the course or abandon ship at the worst moment.

Investors will almost certainly face periods of market stress. Over history, global equities have experienced regular downturns, including sharp falls driven by recessions, financial crises, political uncertainty, and global shocks.

What’s easy to forget in the middle of a downturn is that a bad spell doesn’t necessarily lead to a bad year, or a bad long-term outcome. Even after significant mid-year declines, markets have often recovered to finish the year higher or gone on to deliver strong returns in subsequent years. This reinforces a crucial lesson: reacting emotionally to market falls can be more damaging than the falls themselves.

We can’t control the weather at sea, just as we can’t control market movements. What we can control is how we respond to them. Avoiding panic, sticking to a well-considered plan, and remaining invested through market storms are often the most reliable ways to protect long-term outcomes.

Managing a discretionary trust comes with complex tax rules, and the recent Budget announcements mean some important changes are on the horizon.

We have provided a summary of the key changes below:

Discretionary Trust Income

The budget announced a 2% rate increase on dividends from 6^th April 2026 which apply to the ordinary and higher rates only. No changes were made to the dividend trust rate of 39.35%.

From 6^th April 2027, the tax rates on savings and property income received by discretionary trusts will increase by 2%. This means that the current trust rate of 45% for non-dividend income from discretionary trusts will increase to 47% where it relates to savings or property.

Chargeable Gains from Investment Bonds

Investment bonds are a popular option for discretionary trusts, partly due to the high rates of tax on other types of income, but also the administrative simplicity they provide. Trustees can make use of the tax deferred allowance to avoid triggering chargeable gains within the trust or can assign segments to beneficiaries prior to encashment. The Budget hasn’t impacted these tax planning strategies, but the taxation of bonds will change.

From 6^th April 2027, changes to how savings income is taxed will affect the way investment bonds held within discretionary trusts are taxed.

Where a chargeable gain is taxed on the settlor or a beneficiary, any part of the gain that exceeds their savings allowances will be taxed at the new, higher savings rates.

• Offshore bonds will continue to grow without tax being deducted internally. When a gain arises, it will simply be taxed at the new savings tax rates.

• Onshore bonds will be affected by an increase in the tax paid within UK life funds. The internal tax rate on non-dividend income will rise to 22%, while dividends will remain tax-free.

• When a gain arises on an onshore bond, the individual will receive a 22% tax credit to reflect tax already paid within the fund.
  • Basic rate taxpayers will have no further tax to pay.
  • Higher rate taxpayers will pay an additional 20%.
  • Additional rate taxpayers will pay an additional 25%.

• Top slicing relief will continue to be available for both onshore and offshore bonds. The rules have been updated so that, when calculating this relief, the tax treated as already paid will reflect the new tax rates.

What This Means for Trustees

These changes could impact trust distributions and investment strategies. Trustees should review their current arrangements and consider planning ahead to manage future tax liabilities.

If you would like to discuss anything raised in this article with one of the team, please do reach out.

As the festive season approaches, we’d like to let you know our opening hours over Christmas and New Year:

Eldon’s office will close at 2:00 pm on Wednesday 24^th December, reopening on Friday 2^nd January 2026 at 9am.

We’d like to take this opportunity to thank all our clients, colleagues and peers for their support throughout the year.

We wish you a very Merry Christmas and a Happy New Year!

Planning for the future isn’t just about saving money or investing wisely, it’s about making sure your wishes are respected when you’re no longer here. A will is a legal document that sets out your wishes for what happens to your money, property, and possessions after your death. It acts as your legal voice and ensures: 

• Your wishes are followed – You decide who inherits your money, property, and possessions.
• Protection for loved ones – Unmarried partners and stepchildren are not covered by intestacy rules, so a will safeguards them.
• Guardianship for children – You can name who will care for your children if they’re under 18.
• Tax efficiency – A well-drafted will can help reduce Inheritance Tax.
• Avoid family disputes – Clear instructions prevent arguments and confusion.
• Charitable giving – You can leave gifts to causes you care about.
• Control over special assets – From digital accounts to family heirlooms, you decide what happens.

Intestacy

Intestacy occurs when someone dies without a valid will. Their estate (money, property, possessions) is then distributed according to a fixed legal hierarchy, not personal wishes. The rules vary from country to country. For example, Scottish law is very different to English law.

Under English law, intestacy rules apply to assets solely owned by the deceased; jointly-owned property (if held under joint tenancy, not tenants in common) and nominated benefits (like pensions) usually pass outside intestacy rules.

Who Inherits Under English Intestacy Rules?

1. Spouse or Civil Partner

• If there are no children, the spouse or civil partner gets everything.
• If there are children, the spouse/civil partner receives:
  • All personal belongings.
  • A fixed sum of £322,000 (called the statutory legacy).
  • Half of anything left over.
  • The other half is shared equally among the children.

2. Children

• If there’s no spouse or civil partner, children inherit everything equally.
• Includes biological and adopted children.
• Stepchildren do not inherit unless legally adopted.

3. No Spouse or Children

• The estate goes to relatives in a strict order:
  • Parents.
  • Brothers and sisters (and their children).
  • Grandparents.
  • Aunts and uncles.
• If no relatives exist, the estate goes to the Crown.

Important Points

• Unmarried partners (even long-term) have no automatic right to inherit.
• Jointly owned property and nominated benefits (like pensions) usually pass outside intestacy rules.
• If no heirs are found, the estate becomes property of the Crown.

Why Make a Will?

Intestacy rules often don’t reflect modern family life. Without a will:

• Partners you live with may get nothing.
• Stepchildren are excluded.
• Your estate may be divided in ways that causes financial stress.

Making a will ensures your wishes are followed and loved ones are protected.

The other benefit of having a valid will in place is that you can also choose who you want your executors to be. Executors are the people who will carry out your wishes and manage your estate.

Their responsibilities include:

• Applying for probate.
• Collecting and valuing assets.
• Paying debts, taxes, and funeral costs.
• Distributing your estate to beneficiaries.

It’s therefore important that you opt for someone who is capable, in terms of understanding, but also having the time available to do this as it is a consuming role.

Reviewing Wills after Gifts

Another important consideration is reviewing your will after making significant lifetime gifts. These gifts are often part of estate planning and allow you to support loved ones during your lifetime rather than after your death. However, such gifts can alter the overall balance of your estate and may lead to unintended consequences if your will is not updated. Key areas to review include:

• Inheritance Tax (IHT) implications
  Gifts may remain in your estate for up to seven years under the “seven-year rule.” If you die within that period, they could still attract IHT and affect how much other beneficiaries receive. It’s therefore important to review the will alongside the gift and ensure there are no unintended consequences for other beneficiaries.

• Fairness among beneficiaries
  If one child receives a large lifetime gift and your will divides the estate equally, this can cause disputes. Your will should state whether gifts are to be treated as advancements or ignored when calculating shares of the estate. For example, all lifetime gifts made can be balanced in the first instance, then the estate split equally to ensure fairness (if this is the goal). You should also consider if the estate can be equally balanced too.

• Legal doctrines like ademption and portions
  If you gift an asset mentioned in your will (e.g., a property), that gift may “adeem,” meaning it no longer exists in your estate. Without updating your will, this can leave gaps or unintended beneficiaries.

Careful financial planning made during your lifetime can be undone by the lack of a valid will, or the execution of an out of date will. A will should be reviewed frequently to ensure that it continues to be line with your wishes and your estate passes as you wish.