26/11/2025
The Chancellor delivered the 2025 Autumn Budget today, outlining a package of tax and spending measures that will impact households, landlords, investors and businesses over the coming years.
We’ve pulled together today’s key headlines to help you make sense of what’s coming and what it could mean for you.
Here’s a short summary of the main announcements:
The Government confirmed no increases to income tax, National Insurance or VAT rates, but many indirect changes will still affect overall tax liabilities. Income tax thresholds will remain frozen until 2031, pulling more people into higher tax bands over time.
A new high-value property council tax surcharge will apply from April 2028 for homes worth over £2 million. Dividend tax rates will rise by 2% from April 2026, and separate tax bands for property income will be introduced in April 2027 (basic rate 22%, higher rate 42%, additional rate 47%).
From 2029, salary-sacrificed pension contributions will be partially subject to National Insurance, and ISA rules will change from 2027, requiring at least £8,000 of the annual allowance to be invested (with over-65s exempt).
Electric vehicle owners will face a new per-mile tax from 2028/29, while soft drinks levy rules, fuel duty freezes, alcohol duty rises and new tourism taxes will also come into effect.
For businesses, writing-down allowances will reduce to 14% from April 2026, although a new 40% first-year allowance will be introduced from January 2026 to encourage investment. Business rates support for hospitality will continue, and SME exemptions from transfer pricing rules will remain.
Other announcements include reforms to student loan repayments, additional welfare spending, frozen rail fares, and the State Pension continuing to rise under the triple lock.
As always, the full impact of these measures will depend on your personal or business circumstances. We’ll be sharing more detailed insights over the coming days as further guidance becomes available
If you would like to understand how today’s Budget affects you or your business, the team at Morgan Reach Chartered Certified Accountants is here to help.
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