On Wednesday 26th November 2025, the Chancellor, Rachel Reeves, delivered the Autumn Budget — a Budget shaped by rising fiscal pressures and the need to stabilise public finances.

This year’s Budget introduces one of the most significant increases in tax revenue in over a decade, mainly driven by the continued freeze of income tax thresholds, higher taxes on investment income, and changes to pension and capital gains tax reliefs.

There are also far-reaching changes for both individuals and businesses, many of which will require careful planning.

Over the next weeks and months, we will be analysing these changes closely to identify ways to reduce any potential impact on you or your business.

We will contact relevant clients individually as soon as we identify planning opportunities.

As always, we are on the case — keeping your best interests at the forefront of everything we do.

‍Tax Changes Enforced Now:‍

• Income Tax Threshold Freeze Extended; Income tax and NIC thresholds will remain frozen until 2031, increasing tax bills for many as wages rise.
• Capital Gains Tax Relief Tightened; From November 2025, CGT relief for transfers to Employee Ownership Trusts falls from 100% to 50%.
  From April 2026, gains under Business Asset Disposal Relief and Investors’ Relief will be taxed at 18%.
• IHT Allowances Frozen Until 2031; Nil-rate bands remain unchanged, pulling more estates into IHT.
  APR and BPR will be capped at £1m per person from April 2027.
• Employer NIC Threshold Frozen
  Employer NICs remain at 15%, with the secondary threshold locked at £5,000, increasing employment costs.

‍Some Of The Biggest Announcements Upcoming Tax Changes:‍ ‍

‍Businesses‍

• Higher Taxes on Savings, Dividends, and Property Income;
  From April 2027, rates on investment income increase by 2 percentage points, affecting landlords, investors, and those relying on passive income.
• Corporation Tax and Allowances; Corporation tax stays at 25%, but new rules include:
  – New 40% first-year allowance (from January 2026)
  – Writing-down allowance reduced to 14% (from April 2026)
  – Full expensing retained for qualifying plant & machinery.
• Support for SMEs; Grace period for Small Business Rates Relief extended from April 2026, giving growing businesses more breathing room.
• Business Rates Reforms; From April 2026, retail, hospitality, and leisure premises will benefit from a lower business rates multiplier — 5p below the national rate — supporting around 750,000 properties.
• EMI Scheme Expansion; From April 2026, companies with up to 500 employees and £120m assets qualify — helping more businesses attract and retain key talent.
• VCT & EIS Changes; Investment limits increased.Upfront VCT tax relief reduced from 30% to 20% (April 2026).
• Mileage-Based EV Tax Introduced; From 2028:
  – EVs: 3p per mile
  – Plug-in hybrids: 1.5p per mile
• Mandatory E-Invoicing; From April 2029, all VAT-registered businesses must issue electronic invoices for B2B transactions.

‍Individuals 

• New Property Income Tax Rates; From April 2027, Rental income will be taxed under new rates:
  – 22% (basic rate)
  – 42% (higher rate)
  – 47% (additional rate)
• National Living Wage Increase; From April 2026:
  – Ages 21+: £12.71/hr
  – Ages 18–20: £10.85/hr
  – Ages 16–17 & apprentices: £8/hr
• High-Value Property Surcharge; From 2028, A new annual surcharge will apply to high-value homes:
  – £2m–£5m: £2,500 per year
  – Over £5m: £7,500 per year
• Universal Credit Two-Child Limit Removed; From April 2026, helping over 560,000 families with an average increase of £5,310 per year.
• Salary-Sacrifice Pension NI Relief Capped; From April 2029, only the first £2,000 of salary-sacrificed pension contributions will be exempt from NI — significantly affecting higher earners.
• Rail Fare & Prescription Freeze; Both remain frozen for 2026/27.
• ISA Structure Reform; From April 2027 (under age 65):
  – Up to £12,000 in Cash ISAs
  – Remaining £8,000 must go into Stocks & Shares
• Energy Support Measures;Targeted policies aimed at reducing inflation and easing household energy costs.

If you have any questions on how any area covered affects you or your business please don’t hesitate to get in touch