Autumn Budget 2025 – Key Changes at a Glance

The Chancellor's Autumn Budget introduces a range of measures that will impact both individuals and businesses over the coming years. Here are the main highlights:

Tax & Savings

• Threshold freezes: Income tax and NI thresholds remain unchanged until April 2031, pulling more taxpayers into higher bands.
• Dividend tax: Rates rise by 2% from April 2026 (basic: 10.75%, higher: 35.75%).
• Savings & property income: Separate property tax bands introduced; both savings and property rates increase by 2% from April 2027.
• ISA limits: Cash ISA capped at £12,000 from April 2027 (overall ISA limit remains £20,000).

Inheritance Tax

• Business & agricultural property relief: 100% relief capped at £1m combined from April 2026, then 50% thereafter. Unused allowances can be transferred to a spouse or civil partner.

Employment & Payroll

• Minimum wage rises: From April 2026 – £12.71 (21+), £10.85 (18–20), £8.00 (16–17/apprentices).
• Homeworking relief removed: From April 2026.
• Salary sacrifice NIC cap: £2,000 from April 2029.

Other Notables

• Council tax surcharge: Properties over £2m face an extra £2,500–£7,500 from April 2028.
• Electric vehicle levy: From April 2028, 3p/mile for EVs and 1.5p/mile for hybrids.
• Capital allowances: Main WDA drops to 14% from April 2026; new 40% first-year allowance from Jan 2026.
• CGT: Relief on Employee Ownership Trust disposals cut to 50% immediately.

We've produced two resources to help you navigate these changes:

• Brief Summary (4 pages) – A quick overview of the most high-profile changes. 

• Detailed Newsletter (12 pages) – A comprehensive guide covering all measures, including niche areas.

Both can be found here: Download Budget Newsletters

Planning Ahead

• Review dividend strategy: Consider timing dividends before April 2026 to benefit from current rates.
• Check business structure: Rising property and savings tax rates may affect whether a limited company or sole trade is more efficient.
• Budget for payroll: Factor in minimum wage increases and NIC changes for salary sacrifice.
• Estate planning: If you hold business or agricultural property, review plans before April 2026 to optimise reliefs.
• Capital investment: Plan major purchases ahead of April 2026 to maximise current allowances.

If you have questions or need tailored advice, please get in touch with our team.