The Autumn Budget 2025 presents a series of fiscal measures aimed at stabilising the UK economy, addressing the ongoing cost-of-living crisis, and ensuring long-term growth.
With public finances under pressure, the Chancellor, Rachel Reeves, has outlined a plan to increase tax revenues while also providing targeted support to households and businesses.
A key aspect of the Budget is the freeze on Income Tax thresholds until 2031, which will push many taxpayers into higher tax bands as earnings rise. The freeze will contribute to raising more from personal income taxes over the coming years, alongside increased revenue from income on assets (property, dividends, savings) and reforms to Capital Gains and pension tax reliefs, while leaving the main Income Tax and National Insurance Contributions (NICs) rates unchanged.
These changes are designed to raise the necessary funds to address fiscal deficits and meet public sector spending needs. However, the government has also announced measures to support smaller businesses, including expanded employment allowances and continued funding for critical sectors such as green technology, research and development (R&D), and infrastructure.
For some households, the freeze on tax thresholds will increase financial pressure. However, welfare increases and investments in social housing are aimed at alleviating the cost-of-living strain, particularly for low-income families.
We’ve outlined the main announcements from the statement below and have put together a report that breaks down the key fiscal measures and explains their expected impact in straightforward terms, covering many of the major changes, which you can download here >
Personal announcements
- There will be a continued freeze on Income Tax thresholds until 2030/31.
- From 06 April 2026, individuals will no longer be able to pay voluntary Class 2 National Insurance Contributions for periods abroad.
- From April 2027, separate tax rates for property rental income will be introduced.
- The annual ISA allowance remains at £20,000, but from April 2027, the way this can be allocated between different types of ISAs will change.
- From 26 November 2025, the CGT relief on qualifying disposals to Employee Ownership Trusts will be reduced from 100% of the gain to 50%.
- From April 2029 a cap on the National Insurance (NI) relief available for pension contributions made via salary sacrifice will be introduced.
- From 2028, a new, phased, high-value Council Tax surcharge will be introduced for properties valued at £2m or more.
- While the IHT exemption allowing transfers between spouses or civil partners remains in place, key changes to IHT relief will be introduced.
See details of all personal announcements in our Autumn Budget Report:
Business announcements
- The secondary threshold for employer NICs will remain frozen at £5,000 until April 2031.
- The main Corporation Tax rate remains at 25%, and full expensing continues for qualifying plant and machinery.
- From April 2026, basic and higher dividend tax rates will each increase by two percentage points.
- From 01 January 2026, a new capital expenditure 40% first-year allowance will apply to expenditure allocated to the main pool.
- From April 2026 the main writing-down allowance will be reduced from 18% to 14%.
- Support for SMEs will be provided through the Small Business Rates Relief (SBBR) scheme.
- Eligibility for the Enterprise Management Incentives (EMI) scheme is to be increased.
- Further support for investment will be provided through changes to the UK’s venture capital schemes.
For full details of all business announcements made, read our full Autumn Budget Report:
Other announcements
- A mileage-based tax on electric vehicles (EVs) and plug-in hybrid vehicles will be introduced from 2028.
- Businesses can continue to claim the full cost of electric vehicles and chargepoints against tax until March 2027.
- Online casino duty rises to 40%, and online betting duty increases to 25% from April 2026.
- There will be a freeze on regulated rail fares in England.
- The freeze on NHS prescription charges in England has been extended, keeping the fee per item at £9.90 for 2026/27.
For full details of all other announcements made, read our full Autumn Budget Report:
We can help
If you have any questions about how the announcements in the Autumn Budget may affect you, your family or your business, please get in touch
