Private client

Income tax

The income tax personal allowance, the higher and additional rate thresholds and relevant national insurance thresholds will remain frozen until April 2031.

From April 2027, income tax rates for savings and property income will be increased by 2% for all tax bands. This income will be taxed at either 24%, 44% or 49%. No changes to the income tax rates on dividend or employment income.

From April 2029, taxpayers who ordinarily make payments on account towards non-PAYE income will be required to make payments towards their forecasted Self-Assessment liabilities through automated in year payments with an option to either pay by direct debit or through PAYE.

Payments will be forecasted, based on their last filed Self-Assessment return, with taxpayers able to update their forecasts. The changes will not increase the tax due, but will accelerate payment, with estimated payments reconciled against the final Self-Assessment liability.

Susan Smyth

Principal

KPMG in Ireland

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Nicola Quinn

Associate Director

KPMG in Ireland

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ISAs

From April 2027, the cash ISA allowance will remain at £20,000 a year for individuals aged 18 and over. Alongside retaining the existing limit, the government intends to consider a new incentive aimed at encouraging first-time investment through Stocks and Shares ISAs.

From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers. First-time buyers will receive a 25% government bonus on their final account balance, capped at £20,000, where the funds are used towards a first home costing up to £450,000. Existing Lifetime ISA holders will be unaffected by the rule changes.

From 29 October 2026, the withdrawal charge for a Lifetime ISA used to purchase a property above the £450,000 property price cap will reduce from 25% to 20%.

Pension tax allowance

From 6 April 2027, a new Pension Tax Allowance will apply for the 2027/28, 2028/29 and 2029/30 tax years. It is intended to prevent pensioners whose total income does not exceed the value of the full new State Pension from having to pay small amounts of Income Tax.

The allowance will broadly offset the 20% tax arising on the difference between the State Pension and the Income Tax Personal Allowance. The allowance will be withdrawn at £1 for every £3 of income above the full State Pension.

Pension and lump sum death benefits

From 28 October 2026, the existing two-year time limit for tax-free pension death benefits will be removed. This means pension and lump sum death benefits that would otherwise qualify for tax-free treatment will not become taxable simply because payment is made more than two years after the scheme administrator became aware of the member’s death.

Trading allowance

From 6 April 2027 the Trading Allowance will increase from £1,000 to £3,000. The allowance provides relief for trading income and simplifies the system for those individuals who choose to use the relief, where the allowances cover all their relevant income before expenses, as they will no longer have to declare or pay tax on this income.

Seed Enterprise Investment Scheme, Enterprise Investment Scheme and Venture Capital Trusts

Technical changes will be made to the SEIS, EIS and VCT rules, mainly from 6 April 2027, to address issues with how the schemes operate. A VCT-specific amendment will apply to relevant shares issued from 6 April 2026. Further details to be published on these changes.

KPMG insights – our view

The government has not increased the Income Tax rates on earnings, but it has introduced targeted Income Tax changes, particularly for property and savings income from 6 April 2027. The government estimates 84% of Income taxpayers will be unaffected by this change.

HMRC is moving Self-Assessment towards more real-time tax collection, with tax paid closer to when income is earned. This should reduce large annual tax bills, but may create cash-flow challenges for those with irregular income.

Fixing the cash ISA limit at £20,000 maintains a generous support for cash savers. The new first-time buyer ISA represents a more targeted form of support for first-time buyers.

The change removes a potential tax charge arising purely because of delays in settling pension death benefits. This should be particularly helpful where an estate or pension arrangement takes longer than two years to resolve, as beneficiaries will no longer lose the intended tax-free treatment solely because the payment falls outside that period.

However, the inclusion of unused pension pots within the inheritance tax net from 6 April 2027 remains a concern for many individuals.

Get in touch

The measures unveiled in the UK Autumn Budget will have far-reaching implications for businesses across Northern Ireland. If you have any enquiries, comments, or wish to explore further, we are here to assist.

Contact Susan Smyth or Nicola Quinn of our Tax team today.