The Autumn Budget 2025 focuses on raising revenue through frozen tax thresholds and selected rate increases, while offering targeted support to households and small businesses.
Business Changes
Business Rates
Lower multipliers for retail, hospitality and leisure from April 2026.
Higher multipliers for large commercial properties.
Corporation Tax & Allowances
Corporation tax remains 25%.
Full expensing continues.
From 2026: 40% first-year allowance; writing-down allowance drops from 18% to 14%.
SME Support
Extended Small Business Rates Relief grace period.
EMI eligibility widened to firms with up to 500 employees (from 2026).
Higher VCT/EIS limits, but VCT income tax relief falls to 20%.
Other Measures
EV mileage tax: 3p/mile from 2028.
Low-value import duty exemption removed by 2029.
Mandatory e-invoicing for VAT-registered businesses from 2029.
Personal Tax Changes
Income Tax
Personal allowance and higher-rate thresholds frozen until 2030/31.
Property, Savings & Dividends
From 2027: Property income taxed at 22%, 42%, 47%.
Savings and dividend tax rates increase from 2026–27.
ISAs
From 2027: Under-65s limited to £12,000 Cash ISA + £8,000 Stocks & Shares ISA.
Capital Gains Tax
EOT relief cut to 50% (2025).
BADR and Investors’ Relief taxed at 18% from 2026.
Pensions & NI
From 2029: NI savings on salary-sacrifice apply only to the first £2,000.
Unspent pension pots included in IHT from 2027.
Property Taxes
From 2028:
£2,500 surcharge for properties £2m–£5m
£7,500 for properties £5m+
Inheritance Tax
Nil-rate bands frozen until 2031.
Agricultural and Business Property Relief capped at £1m.
Support for Households
Two-child limit in Universal Credit removed from April 2026.
Planned PIP cuts reversed.
Rail fares frozen for 2026.
Prescription charges frozen.
Energy bill support measures from 2026.
What This Means
Most taxpayers will see higher liabilities due to threshold freezes and rising rates.
SMEs benefit from reliefs and investment incentives, though some costs will increase.
