On Wednesday 26 November, Chancellor Rachel Reeves delivered the Autumn Budget 2025, in which she announced a number of changes impacting individuals and businesses.
From extended freezes on income tax and National Insurance thresholds, to adjustments in dividend and savings tax rates, changes to electric vehicles road tax and increases to the National Minimum Wage and Living Wage, the Chancellor’s measures are designed to raise revenue while maintaining fiscal stability.
To summarise the most significant points:
- Personal tax allowances and rates on general income frozen for a further three years to April 2031
- Also frozen: NICs employer threshold and upper earnings limit, and IHT nil band, to April 2031; Plan 2 Student Loan repayment threshold to April 2030
- No immediate changes to reliefs on pension schemes, but salary sacrifices above £2,000 to be subject to National Insurance from April 2029
- Increases in income tax rates on dividend income from April 2026, and on rental and savings income from April 2027
- Only minor changes to Inheritance Tax rules announced last year
- ISA investment limits and rules remain the same, but from April 2027 new £12,000 limit for cash within the £20,000
- Corporation tax rates unchanged, but Writing Down Allowances reduced from April 2026; new FYA from 1 January 2026
- Council tax surcharge on properties worth over £2 million to apply from April 2028
In our detailed Budget summary, available here, we have outlined the main tax proposals and their impact, and also included reminders of matters announced in previous Budgets, which are now coming into force.
We will, of course, be happy to discuss any of the changes outlined in the Autumn Budget 2025, and help you navigate legislative changes.
Should you have any questions or concerns, please do not hesitate to get in touch with your usual Bates Weston contact, or via our contact us page.
