Autumn Budget 2025: Key Takeaways

What the Autumn Budget 2025 Means for You

Rachel Reeves delivered this year’s Autumn Budget on 26 November 2025. Her speech outlined what she described as the “fair and necessary choices to deliver on the government’s promise of change.” After weeks of speculation, and an early leak of the OBR’s findings, the Chancellor confirmed a wide range of tax freezes, rate changes and business measures that will impact individuals and employers over the coming years.

Personal Tax & Savings

A number of thresholds remain frozen until April 2031, including the Income Tax Personal Allowance and higher/additional rate thresholds. Several rate increases were also confirmed:

• – Property income will be taxed at new, separate rates from 2027/28 (22%, 42%, 47%).
• – Dividend tax will increase by 2% for basic and higher-rate bands from 2026/27.
• – Savings income rates will also rise by 2% from 2027/28.

Reliefs will become less generous for property, savings, and dividend income from April 2027 as they will be applied only after other income types.

The ISA cash limit will be set at £12,000 from 2027, while savers over 65 retain the £20,000 cash ISA allowance.

NIC thresholds will remain fixed until 2031, with some changes to voluntary contribution rules, particularly for those paying NICs from abroad.

National Insurance & Employment Measures

The government confirmed several measures affecting employers and employees. From 2029, NICs will apply to employer pension contributions above £2,000 via salary sacrifice.

Additionally, it was announced that the National Living Wage will rise to £12.71 from April 2026.

Business Tax Changes & Investment Reliefs

This year’s Budget introduced a series of changes aimed at reshaping business investment and tax reliefs over the coming years. A new 40% First Year Allowance will apply to main-rate expenditure from January 2026, while writing-down allowances will fall from 18% to 14% from April 2026, increasing the long-term cost of capital investment. Furthermore, companies listing in the UK will benefit from a new three-year exemption from Stamp Duty Reserve Tax.

Tackling Tax Avoidance

It is also worth noting that the government is set to strengthen HMRC powers. This will be aimed at tackling fraud within the Construction Industry Scheme and increasing rewards paid to informants of high-value tax fraud. Additionally they plan to introduce new powers to tackle promoters of marketed tax avoidance.

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We’ve compiled a comprehensive guide of the changes announced in the Autumn Budget 2025. Our summary analysis covers tax, pensions, businesses, and what the new laws mean for everyday savers and companies.

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