Chancellor Rachel Reeves delivered the Autumn Budget on 26 November 2025, unveiling a package of tax measures projected to raise around £26 billion by 2029–30, according to the Office for Budget Responsibility (OBR). Most of this revenue is expected toward the end of the forecast period.
The government’s approach combines threshold freezes, targeted rate changes, and new tax frameworks affecting individuals, property owners, savers, employers, and businesses. Alongside these measures, the Budget introduced policies aimed at easing household pressures, including:
- Support to reduce average energy bills by £150 from April 2026
- Freeze on rail fares
- Removal of the two-child benefit cap
Reeves described the approach as putting “money off bills, and in the pockets of working people.”
This guide summarises the confirmed changes and what they mean heading into 2026 and beyond.
Who Is Impacted Most?
Certain groups are likely to feel the effects more strongly:
- Employees and middle-income earners: Threshold freezes until 2031 increase fiscal drag, raising the effective proportion of income paid in tax over time.
- Landlords and property investors: Introduction of separate property income tax rates from 2027 increases liabilities on rental income.
- Savers and shareholders: Dividend and savings tax increases raise tax bills for those with investment income.
- Employers: Employer National Insurance Contributions (NICs) at 15% from April 2025; frozen thresholds and new reporting rules add costs.
- Business owners and investors: Changes to reliefs, EIS/VCT schemes, and targeted capital gains adjustments affect long-term planning.
- High-net-worth individuals: Inheritance Tax thresholds frozen, and pensions included in estates from 2027.
Key Autumn Budget 2025 Tax Changes
|
Area |
Key Change |
Effective From |
|
Income Tax |
Thresholds frozen until 2031 |
Ongoing |
|
Property Income Tax |
Separate rates: 22% / 42% / 47% |
April 2027 |
|
Savings Income Tax |
+2 percentage points |
6 April 2027 |
|
Dividend Tax |
+2 points for basic & higher rate |
6 April 2026 |
|
NICs |
Thresholds frozen; employer NIC 15% |
2025–2031 |
|
National Minimum Wage |
£12.71 (21+) |
April 2026 |
|
Company Car Tax |
EV rates adjusted; other bands generally increase |
April 2026 |
|
Capital Allowances |
WDA cut to 14%; new 40% FYA |
2026 |
|
EIS/VCT |
Investment & company limits doubled; VCT relief 30% → 20% |
2026 |
|
Capital Gains / Reliefs |
Targeted changes to BADR and Investors’ Relief |
April 2026 |
|
Inheritance Tax |
Thresholds frozen; pensions included in estates |
April 2027 |
|
VAT |
Registration threshold unchanged at £90k |
April 2026 |
|
Making Tax Digital |
Income >£50k: 2026; >£30k: 2027; planned >£20k: 2028 |
2026–2028 |
Note: Some technical details, like exact company car benefit-in-kind rates or CGT annual exemptions, are pending final guidance.
What This Means for Individuals and Businesses
While headline tax rates largely remain unchanged, the combination of threshold freezes, higher investment-related taxes, and tighter reporting requirements means effective tax burdens are expected to rise for many:
- Property owners, employers, and investors face the most substantial changes
- Employees will continue to experience fiscal drag over the next several years
Proactive planning is essential to minimise tax exposure and ensure compliance with the new rules.
Need Help Navigating These Changes?
If you’re unsure how these updates affect you or your business, Atek Accounting can help you plan ahead and minimise your tax exposure. Get in touch today for personalised advice and support.
