Autumn Budget 2025
The Chancellor Rachel Reeves has delivered her second budget. After months of unprecedented speculation on where taxes might rise to fill a new ‘black hole’ in the public finances, the Chancellor has announced £26 billion of tax rises, mainly from policies that were pre-trailed in the press.
Here are some of the 2025 Autumn budget highlights:
Key changes for individuals and small business owners:
The Chancellor Rachel Reeves has delivered her second budget. After months of unprecedented speculation on where taxes might rise to fill a new ‘black hole’ in the public finances, the Chancellor has announced £26 billion of tax rises, mainly from policies that were pre-trailed in the press.
Here are some of the 2025 Autumn budget highlights:
Key changes for individuals and small business owners:
- Tax rates on dividends, savings and property income each increase by 2% over the next few years.
- Dividend tax rises by 2% from 6 April 2026, taking the basic rate to 10.75% and the higher rate to 35.75%. The £500 dividend allowance stays in place.
- New separate property income tax bands of 22%, 42% and 47% are introduced from 6 April 2027.
- Savings income tax rates (basic, higher and additional) all rise by 2% from 6 April 2027.
- Income tax and National Insurance thresholds remain frozen until 2031, so more people are pulled into higher bands as wages increase.
- Cash ISAs capped at £12,000 a year from 2027, still within the overall £20,000 ISA allowance.
- Mileage tax on electronic vehicles from 2028.
- State pension up 4.8%; student loan threshold frozen.
- Mansion tax: £2,500 on homes over £2 million rising to £7,500 over £5 million.