UK Autumn Budget 2025: Key Changes

1. Personal Taxation

• Income Tax & NI Thresholds Frozen Until April 2031: Personal allowance (£12,570), higher-rate (£50,270), and additional-rate (£125,140) remain unchanged.

• Dividend & Savings Income Tax Rise: From April 2026, dividend tax rates increase by 2 points; from April 2027, savings/property income tax rises by 2 points.

2. ISAs & Savings

• ISA Reform (April 2027): £20,000 annual limit remains, but under-65s can only put £12,000 in cash; remaining £8,000 must go into Stocks & Shares ISA. Over-65s retain full £20,000 cash allowance.

3. Pensions

• Salary Sacrifice Cap: From April 2029, only first £2,000/year exempt from NI; above this, standard NI applies.

• State Pension: Triple lock maintained; pensions rise 4.8% in April 2026.

4. Welfare & Benefits

• Two-Child Benefit Cap Scrapped: From April 2026, families can claim for all children.

• Help to Save Scheme: Extended beyond 2027.

5. Property & Wealth Taxes

• Mansion Tax (April 2028): Annual surcharge on homes worth over £2m (£2,500–£7,500).

• Inheritance Tax: Thresholds frozen until 2031.

6. Motoring & Transport

• EV Mileage Tax (April 2028): 3p per mile for EVs; 1.5p for hybrids.

• Fuel Duty: 5p cut extended until Sept 2026, then phased out.

• Rail Fare Freeze: For 2026; NHS prescriptions frozen at £9.90.

7. Business & Investment

• Capital Allowances: New 40% First-Year Allowance from Jan 2026.

• EIS & VCT: Company investment limits doubled; stamp duty exemption for new UK listings for 3 years.

• Lower Business Rates: Permanent relief for retail, hospitality & leisure.

8. Other Taxes

• Gambling Duty: Remote gaming duty rises from 21% to 40%; online betting duty from 15% to 25%.

• Sugar Tax: Extended from 2028 to include milkshakes and lattes.

• Alcohol & Tobacco Duties: Increase by 2% above RPI.