Budget Speculation: Personal Allowance May Rise, Capital Gains Tax Could Increase

Speculation grows that personal allowance may rise, while capital gains tax could increase to fund the change. Key details emerge ahead of 2026 Autumn Budget.

Editorial Desk

September 23, 2026 One Min Read

POLICY WIRE — City, Country — New discussions are emerging about potential changes to the UK’s personal allowance and capital gains tax as the 2026 Autumn Budget approaches.

The personal allowance, currently set at £12,570, may see its first increase in five years, according to reports. However, experts warn that rising income could trigger higher tax rates, particularly for those earning above £50,270, where the 40% rate applies to earnings beyond that threshold.

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A proposal to raise the personal allowance by £3,000 has been floated by Labour donor Dale Vince, who commissioned research from the National Institute of Economic and Social Research. The plan suggests funding the increase through a potential rise in capital gains tax. Meanwhile, political figures, including the Prime Minister and Chancellor, are reportedly considering this approach.

Reporting by Policy-Wire (PW)

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