UK Autumn Budget 2025: Key Changes & Announcements
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- Nov 28, 2025
- 3 min read
On 26 November 2025, the Chancellor delivered the Autumn Budget 2025 — a wide-ranging fiscal statement that introduces tax, pension, property and investment changes. Understanding the implications is critical. The following summarises the main changes and what they mean in practice.
Personal tax & national insurance thresholds remain frozen until 2031.
The government will continue the freeze on thresholds until the end of the 2030–31 tax year. This means more people will move into paying tax and into higher tax bands as income increases.
Higher tax on asset-derived income.
Income from dividends, savings and property will face increased taxation. Dividend and savings income tax rates will rise by two percentage points from April 2026 (dividends) or April 2027 (savings). For property income, basic, higher and additional rates will be adjusted accordingly from April 2027.
Changes to pension salary-sacrifice and pension tax relief.
From April 2029, only the first £2,000 of pension contributions made via salary-sacrifice schemes will remain exempt from National Insurance Contributions (NICs). Contributions above this threshold will be subject to NICs by both employee and employer.
Tightening of relief regimes and incentives.
The relief on capital gains tax (CGT) for disposals to Employee Ownership Trusts will be halved, effective immediately, significantly reducing the previous 100% relief.
For investments in Venture Capital Trusts (VCTs), income tax relief will reduce from 30% to 20%.
High-value property surcharge (Mansion Tax / High-Value Council-Tax Charge).
A new annual surcharge will apply from 2028 on properties valued at £2 million or more. The charge will start at £2,500 per year (for the lowest-value bracket) and increase up to £7,750 for properties over £5 million.
Motoring and fuel policy: Mixed outcome.
The temporary 5p cut in fuel duty is extended until September 2026; the scheduled inflation-linked rise in fuel duty is cancelled for now.
However, a new pay-per-mile tax for electric vehicles (EVs) and plug-in hybrids will be introduced from April 2028: 3p per mile for EVs and 1.5p per mile for plug-in hybrids. This aims to recoup revenue lost from the freeze on fuel duty.
Stamp Duty and corporate listing incentives.
New listings on the London Stock Exchange will benefit from a three-year exemption from Stamp Duty on share trading (Stamp Duty Reserve Tax) for transactions after 27 November 2025.
Capital allowances and first-year allowances for business assets.
A new 40% First-Year Allowance (for main-rate expenditure, e.g. plant and machinery) will be introduced from 1 January 2026. Meanwhile, writing-down allowances will be reduced — main-rate allowances falling from 18% to 14% from April 2026 (Corporation Tax) and from 6 April 2026 (Income Tax) for relevant assets.
Support for pensioners and lower-income households.
The National Living Wage will rise to £12.71 per hour from April 2026.
State pension will be increased.
Energy bills and cost-of-living relief.
To help households facing high energy costs, the government plans to remove certain levies on consumer energy bills and instead fund them from general taxation. The average household could save around £145–£150 per year beginning April 2026.
Student Loan Repayments.
The repayment thresholds to be frozen from April 2027 to 2030
Apprenticeships.
Free apprenticeships for under 25
2 child 'Child-Benefit' cap scrapped from April 2026
Cash ISA £20,000 tax free amount reduced to £12,500 for under 65's
Rail fares & prescription charges frozen
Luxury cars to be removed from the Mobility Scheme
Gambling - Remote Gaming Duty will increase from 21% to 40% from April 2026 and Duty on online betting will increase from 15% to 25% from April 2027. Bingo Duty will be abolished from April 2026.
Drinks - the Soft Drinks Industry Levy (SDIL), also known as the ‘sugar tax’, will be extended to pre-packaged, milk-based drinks with added sugar from January 2028.
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