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.
Here are the key points from the budget.
- Income Tax Income tax thresholds will remain frozen at current levels for three more years, until 2030-31.
- 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.
- 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 to CGT for EOTs CGT relief on business sales to employee ownership trusts will be cut from 100% to 50%.
- Pension Salary Sacrifice It has been confirmed, from April 2029, that national insurance will be charged on salary-sacrificed pension contributions above an annual £2,000 threshold.
- 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.
Changes on customs: Removal of relief for low value imports to support high street retailers who face competition from overseas online sellers.
ISA Reforms: To encourage investment and savings growth, from 6 April 2027 the annual ISA cash limit will be set at £12,000, with an additional £8,000 allowance for investments only. Over 65’s will continue to be able to save up to £20,000 in a cash ISA each year.
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).
Electric Vehicles: A mileage-based charge of electric vehicles will be introduced from April 2028 in addition to current VED paid by all vehicles. The charge will be £0.03 per mile for BEVs and £0.015 per mile for plug-in hybrid cars
Gambling Tax: From 1 April 2026, Remote Gaming Duty will 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.
Autumn Budget Hub
MHA will help you navigate the ever-evolving tax landscape, with a range of exclusive insights and practical guidance.
