26/11/2025
Our summary of today's Autumn Budget:
- The minimum wage for 18-20 year olds will increase from £10 to £10.85 per hour and for over 21 year olds from £12.21 to £12.71 an hour.
- 2% hike in tax rates on dividend, property and savings income.
- The transfer of the 100% relief allowance between spouses allowed.
- Income tax and National Insurance thresholds in England and Wales will remain frozen until 2031 (Scotland sets its own bands and rates).
- New 'mansion tax' which will be an annual charge of £2,500 for properties worth more than £2m and £7,500 for properties worth more than £5m - to be collected along with council tax.
- A cap on salary sacrifice into a pension scheme introduced at £2,000 with contributions above this being taxed the same way as other employee pension contributions - to come into effect in 2029.
- Remote gaming duty to be raised from 21% to 40% and online betting from 15% to 25%. No changes to in-person gambling or horse racing. Bingo duty to be abolished in April 2026.
- Voluntary Class-2 NIC payments abolished for people living aboard.
- From April 2027, system will be reformed. The full £20k allowance will remain, where £8k will be designated to investment. Over 65s will keep the full £20k cash allowance.
- New powers given to to pursue the promotors of Tax Avoidance Schemes
- New electric vehicle excise duty announced at 3p per mile for electric cars and 1.5p for plug-in hybrids.
- Permanently lower tax rates for more than 750,000 retail, hospitality and leisure properties. This will be funded through higher rates on properties worth £500,000 or more.
- Funding for training of under-25 apprenticeships completely free for small and medium sized enterprises.
- A new 40% first year allowance for Companies for expenditure.
- People only in receipt of the basic or new state pension do not have to pay small amounts of tax through simple assessment from April 2027.
- 100% relief on Capital Gains Tax on business sales made to Employee Ownership Trusts will be reduced to 50%
- All payments from the Infected Blood Scheme exempt from Inheritance tax.
- The two-child benefit cap will be scrapped from April 2026.