Highlights of the Autumn Budget 2025

Here are the key points from the Government's budget delivered on 26th November 2025 that effect our client's.

With her 2nd stab at the despatch box, Rachel Reeves delivered the much delayed Budget, which crept into winter.

A year ago she set out to "fix the foundations", but with no growth and more uncertainty, the foundations still seem weak.

So let's take a look to see if she finally got it right and introduced a range of measures to boost the economy and help businesses grow or it the usual sorry state of affairs. Bet's are on as to how long she will remain at her role.

Labour’s manifesto promised they will not raise taxes on working people, which clearly has been broken.

Pay, Income Tax and National Insurance

Income tax and NI thresholds to be frozen until April 2031, which is for a further 3 years.

The Economy

The growth forecasts have increased to 1.5% for the UK’s GDP.

Her stability rule and investment rule should help the UK to keep borrowing in check and keep inflation low.

Apprenticeship Schemes

Funding for under 25’s to be completely free for small businesses.

Corporation Tax

The rates of corporation will be retained.

But there is a reduction for writing-down-allowance from 18% to 14%. But an newfirst year allowance of 40% for main rate expenditure.

Tax on Housing

There will be a new surcharge tax on houses worth over £2m from 2028 with an increased charge for houses worth over £5m. This is the high value council tax charge.

It’s tiered: £2,500 a year for homes worth £2-2.5 million, rising to £7,500 for properties over £5 million.

This will impact the top end of the market, which will have a ripple effects further down the chain.

ISA's & Pensions

From April 2027 the full £20,000 allowance will remain. £8,000 will be designated for investment ISA’a. The over 65’s will retain the full £20,000 allowance.

Salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from NI contributions (NICs) from April 2029.

Pensions for people living abroad

Abolishing voluntary class 2 NI for people living abroad.

From 2027, people receiving only the basic or new state pension will not be subject to self assessment and will have to complete a simple assessment.

Dividend, Property and Savings Income

Tax rates to increase by 2% across the basic and higher rate tax bands.

Dividends: From April 2026, ordinary and upper rates of tax on dividend income will rise by two percentage points to 10.75% and 35.75% respectively. There is no change to the additional rate, which remains at 39.35%.

Property and savings: From April 2027, the rate of tax on property and savings income will increase by two percentage points across all tax bands to 22%, 42%, and 47% respectively.

This is a short sighted move as ultimately landlords will pass this on as increases in rent, hurting renters.

New Mileage Tax

A new mileage tax for EV’s from April 2028. This will be a £0.03 per mile for full electric and £0.015 per mile for hybrids. This is whiplash on EV drivers.

UAE

For those people looking to move abroad, we can help you compare the UK vs UAE tax outcomes and help you plan the most efficient structure.

Other Measures

2 child benefit cap cap lifted

AI - further investment in Wales for AI

Digital ID’s to be introduced to help HMRC to track fraud in businesses.

More power to HMRC to crack down on tax avoidance scheme providers.

Soft drinks levy extended to high-sugar drinks, including milk-based drinks.

New Tourist tax for overnight stays.

Reduced CGT relief on disposals to employee ownership trusts.

Student loans repayment threshold frozen at the 26/26 level for three years.

Making tax digital - there will be no late submission penalties for quarterly updates during the 2026/27 tax year.

State pension to rise under the triple lock.

Overwhelmed? So What You Should Do Next

1. Remain calm - as big headlines don't always mean big personal impact

2. If you would like to know more about how this effects you or your business, please contact your team member directly for a tax planning session or email enquiries@Charterwells.co.uk.