Key Points from Autumn Budget 2025

The Autumn Budget 2025 has now been delivered, with Chancellor Rachel Reeves setting out a wide range of measures that will influence personal finances, investment decisions and business planning in the years ahead.

With tax changes affecting savings, property, dividends and everyday business costs, many individuals and organisations will be assessing what the announcements mean for their circumstances.

Our 12 key points break down the most important elements of the Autumn Budget to help you quickly make sense of the changes. Whether you’re focused on managing your personal tax position or planning the next steps for your business, these insights highlight the measures most likely to impact you.

• Income Tax

Income tax thresholds will remain frozen at current levels for a further three years, up to April 2031. This policy means as individual’s pay increases, more people will be drawn into higher income tax brackets.

• Income tax on dividends, savings, and property

The ordinary and upper dividend tax rate will be increased by 2% effective from April 2026. The savings tax rate will also be increased by 2% across all bands from April 2027. In addition, new rates of tax will be introduced for property with effect from April 2027, these will be set at 2% above the non-savings rate in each band.

• Pension Salary Sacrifice

It has been confirmed, from April 2029, that only the first £2,000 of annual pension contributions made via salary sacrifice will remain exempt from National Insurance (NI). Above this threshold, NI will be charged.

• ISA Reforms

From 6 April 2027, the annual ISA cash limit will be reduced from £20,000 to £12,000, with an additional £8,000 allowance for investments only, for anyone under the age of 65. Over 65’s will retain the existing allowance, being able to save up to £20,000 in a cash ISA each year.

• The budget contained numerous changes to Fuel Duty and introduced charges for Electric Vehicles (EVs): 

Fuel Duty:

The temporary 5p reduction will be extended for five months, keeping the rate at 52.95p per litre until September 2026.

From April 2027, fuel duty will rise annually in line with the Retail Price Index (RPI).

EVs:

A mileage-based charge for electric vehicles will be introduced from April 2028.

The charge will be £0.03 per mile for BEVs and £0.015 per mile for plug-in hybrid cars.

• Changes to CGT for EOTs

Capital Gains Tax relief on business sales to Employee Ownership Trusts (EOTs) will be cut from 100% to 50%.

• Business Rates

The high street will benefit from permanently lower business rates for retail, hospitality and leisure businesses, funded by higher rates for the most expensive properties such as warehouses used by large online retailers.

• Business Property Relief (BPR) and Agricultural Property Relief (APR)

The £1 million 100% APR/BPR allowance will now be transferable between spouses, a very welcome relief for farmers and family business owners.

• Changes on customs

Removal of relief for low value imports to support high street retailers who face competition from overseas online sellers.

• Changes to Capital Allowances 

Changes to Capital Allowances sees a reduction in the Writing Down Allowance from 18% to 14% for companies, and the addition of a new 40% First Year Allowance, specifically benefiting businesses which are heavily invested in new assets used for leasing.

• Gambling Tax

A new gambling tax from 1 April 2026 will see the Remote Gaming Duty almost double from 21% to 40%.

• Mansion Tax

Significant changes to property taxation sees the introduction of a High Value Council Tax Surcharge (HVCTS or “Mansion Tax”) in England from April 2028:

Homes worth over £2m will incur an annual charge of £2,500.

Homes worth over £5m will incur an annual charge of £7,500.

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