Autumn Budget 2025
After numerous rumours and an early leak of the Office of Budget Responsibility’s report on their findings, Rachel Reeves delivered her very late 2025 Budget on 26 November 2025.
From frozen thresholds to tax on mileage for electric cars, you can read our full guide here.
Here are some of the highlights.
Personal tax
Frozen thresholds to be extended from April 2028 to April 2031
A new separate tax on property income to be created
From April 2026
- Tax on Dividends will be increased by 2% ; from 8.75% to 10.75% in basic rate band and from 3.75% to 35.75% in the higher rate
From April 2027
- The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%.
- all rates applicable to savings income will be increased by 2%. The savings basic rate will become 22%, the savings higher rate will become 42% and the savings additional rate will become 47%. The Starting Rate for Savings will be retained at £5,000 for 2026/27 and will stay at this level until 5 April 2031
- Cash ISA limit will be set set at £12,000, within the overall annual ISA limit of £20,000. Savers over the age of 65 will continue to be able to save up to £20,000 in a cash ISA each year. Other limits remain £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2031.
Employment
- From 1 April 2026, the National Living Wage will increase by 4.1% to £12.71 per hour.
The National Minimum Wage for 18-20 year olds will also increase by 8.5% to £10.85 per hour and for 16-17 year olds and apprentices by 6.0% to £8.00 per hour - Employee and Employer NIC will be charged on pension contributions above £2,000 per annum made via salary sacrifice. This will take effect from 6 April 2029
Business
The penalty for taxpayers submitting a Corporation Tax return late will double for returns for which the filing date is on or after 1 April 2026
Disclaimer: Whilst we take care to ensure the accuracy of this document, no responsibility for loss incurred by any person acting or refraining from action as a result of this information can be
accepted by the authors or firm.
