Autumn Budget 2025

November 26, 2025

Chancellor Rachel Reeves delivered her Autumn Budget today (26 November 2025), though much of it had already been revealed following weeks of leaks and an accidental early release of the OBR report, which saw MPs reading the details on their phones before she even began!

Here’s a quick roundup of the key points for business owners and individuals:

Business & Company Owners

Corporation tax remains at 25%, with the small profits rate staying at 19% for companies with profits under £50,000.
From April 2026, the main writing down allowance on plant and machinery will drop from 18% to 14%.
A new 40% first-year allowance (FYA) begins from January 2026 for main-rate assets. This replaces part of the current system but has no impact on most small businesses that continue to claim the 100% Annual Investment Allowance (AIA).
Directors or companies running electric vehicles should note upcoming mileage-based road tax changes, see Transport section below for details.

Income, Dividends & Savings

Personal income tax thresholds remain frozen until 2030–31.
From April 2026:
- Basic rate dividend tax increases to 10.75% (from 8.75%)
- Higher rate dividend tax increases to 35.75% (from 33.75%)
From April 2027, new property income tax rates will be introduced:
- Basic rate: 22%
- Higher rate: 42%
- Additional rate: 47%
From April 2027, savings income tax rates will increase by 2 percentage points across all bands.
From April 2027, the annual cash ISA limit for under-65s will be set at £12,000 (within the £20,000 total ISA allowance). The remaining £8,000 must be invested. Over-65s will retain full £20,000 cash ISA flexibility.

Pensions, NI & Payroll

From April 2029, salary sacrifice pension contributions above £2,000 per employee per year will be subject to both employer and employee National Insurance.
Minimum wage rates from 1 April 2026:
- Age 21+: rising from £12.21 to £12.71 per hour
- Age 18–20: rising from £10.00 to £10.85 per hour
- Age 16–17 and apprentices: rising from £7.55 to £8.00 per hour
- Full details here: Minimum Wage Rates for 2026 – gov.uk
State pension to rise by 4.8% from April 2026 under the triple lock.

Wages, Benefits & Household Costs

The two-child limit on Universal Credit and Child Tax Credit will be scrapped from April 2026.
The Help to Save scheme is extended and expanded beyond 2027.
A new Youth Guarantee will provide support for all 18–21-year-olds in England, including access to apprenticeships, training or job support.

Transport, Fuel & Green Taxes

Fuel duty frozen until September 2026, with staged increases from then onwards.
From April 2028, a new road tax will apply to electric and plug-in hybrid vehicles.
- Electric vehicles: 3p per mile
- Plug-in hybrids: 1.5p per mile
- For example, an EV driver doing 8,500 miles a year would pay around £255 annually. Rates will rise each year with inflation. This change brings EV drivers into line with other motorists who currently pay fuel duty, though at a lower rate.

Housing, Property & High‑Value Assets

From April 2028, a new council tax surcharge applies to properties in England worth over £2m:
- £2,500 for £2m–£2.5m
- £7,500 for £5m+
Applies to main residences and second homes, and will be collected via local councils.

Other Notable Changes

From 2028, sugary drinks tax will apply to milk-based drinks like pre-packaged milkshakes and lattes.
NHS prescription charges in England remain frozen at £9.90 for another year.
Employee ownership tax relief on certain disposals has been reduced.
Premium cars will no longer be eligible under the Motability scheme.
A fuel poverty levy will be removed from energy bills, expected to reduce household costs by around £150 per year.