Autumn Budget 2025
Chancellor Rachel Reeves delivered her Autumn Budget on 26 November 2025, confirming that further tax rises are on the way for millions of households and businesses.
With multiple tax thresholds frozen and new increases impacting savings, dividends, property income and electric motoring, the overall message is that most people will contribute more over the coming years.
Alongside measures affecting wages, pensions and investment reliefs, there were also changes aimed at landlords, shareholders, business owners and savers.
You can download our full breakdown of the Budget on the link below, however in the meantime, here are our key Budget highlights:
Income Taxes & Thresholds:
- Income tax and National Insurance thresholds frozen until 2031, bringing more people into higher tax bands over time.
- Dividend tax rates to rise by 2% from April 2026.
Property & Savings:
- Property income tax rates increase by 2% from April 2027 (England & NI).
- Savings income tax rates also increase by 2% from April 2027.
- New “mansion tax”: council tax surcharge on properties worth over £2 million, from April 2028.
Investment & Savings Accounts:
- Cash ISA limit capped at £12,000 a year for under-65s from April 2027 (overall limit stays £20,000).
- VCT (Venture Capital Trust) income tax relief reduced from 30% to 20% from April 2026.
Business Owners & Employers:
- Minimum wage rises across all age bands from April 2026, impacting payroll costs.
- NIC relief on salary sacrifice pensions capped at £2,000 per year from April 2029.
- First-year capital allowances increased to 40% from January 2026, but writing-down allowance reduced from 18% to 14% from April 2026.
Electric Vehicles:
- New excise duty: 3p per mile for electric cars, 1.5p per mile for hybrids.
Inheritance Tax:
- Agricultural & Business Property Relief capped at £1m from April 2026, but unused allowance can be transferred to spouses, enabling couples to pass up to £3m tax-free.
DOWNLOAD LWA's FULL 2025 AUTUMN BUDGET SUMMARY PDF HERE.pdf
Anyone affected may benefit from reviewing their position ahead of the 2026/27 tax year to ensure they remain tax-efficient. For personalised advice please give our Tax Team a call on 0161 905 1801, and we'll be happy to help you!
Below is LWA's summary of the Spring Statement delivered by Chancellor Rachel Reeves on Wednesday 26th March 2025 including a breakdown of how the changes affect working people, employers, business owners, landlords, or what to do if your situation is different:
On Wednesday 26th March 2025, Chancellor Rachel Reeves presented her Spring Statement to parliament. Despite a backdrop of low economic growth and increasing government borrowing costs, the Chancellor remains committed to her ‘non-negotiable’ fiscal rules that aim to bring stability to the economy and security for working people. With further borrowing ruled out and a determination not to announce further tax changes, her focus has been on government spending.
Headlines included:
- An ongoing commitment to generate economic growth, despite short-term forecast growth levels being revised downwards from 2% to 1%.
- Confirmation of increased defence spending in a rapidly changing world.
- Changes to the welfare system, including stricter tests for personal independence payments.
- Streamlining the civil service, with an accelerated new Transformation Fund.
- Increased investment in social and affordable housing. • Tackling skills shortages, including in the construction sector.
- A crackdown on tax evasion.
For the full summary including a breakdown of new tax rates for businesses and individuals, please click the link below.
LWA 2025 Spring Statement Summary.pdf
Below are the details for the Autumn Budget delivered on 30th October 2024 by Chancellor Rachel Reeves as she presented her first budget to parliament.
Headlines included:
- Immediate increases to capital gains tax rates with further uplifts in relation to some business disposals from both April 2025 and April 2026.
- Immediate increases to Stamp Duty Land Tax, including for those buying residential property when they already own at least one dwelling.
- Confirmation that 20% VAT will apply to private school fees for the school term beginning in January 2025.
- Increased costs for many employers from April 2025 through both increases to the national minimum wage and significant reforms to employers’ national insurance contributions.
- Another change in approach for businesses utilising double-cab pick up vehicles, coming into effect in April 2025.
- Plans to restrict inheritance tax agricultural and business property reliefs from April 2026.
- Plans to include an individual’s undrawn pension fund in their inheritance tax estate from April 2027.
Click here to down LWA's 2024 Autumn Budget summary PDF for the full details on how the Budget affects individuals and businesses in varying scenarios.
Click here to view a separate document detailing all the Tax changes as a result of the 2024 Autumn Budget for different types of businesses, property owners and individuals.