14th November 2025
The Autumn Budget 2025 delivered a number of changes across business, employment and personal taxation. While tax rises were still a clear theme throughout the Chancellor’s speech, much of the impact is scheduled for future years, meaning businesses and individuals have time to prepare. Below, we outline the key measures and what they could mean for you.
Business rates for Retail, Hospitality, and Leisure will decrease from 2026/27. Standard multiplier falling from 55.5p to 48p and small business multiplier from 49.9p to 43.2p.
A new High-value business rates multiplier will apply for properties with a rateable value over £500,000. This surcharge will be 2.8p over the standard multipliers, so 50.8p for 2026/27.
Capital Allowances sees several changes. From April 2026, the main rate of writing down allowances will reduce from 18% to 14%. A new First Year Allowance, at 40%, will be available for unincorporated businesses and for assets used for leasing.
Relaxing requirements for Enterprise Investment Scheme (EIS), EMI Schemes and Company Share Option Plans.
Allowing Mayors / local authorities to charge a Visitor Levy / “Tourist Tax”.
By March 2029 the UK customs duty relief for low-value imports (less than £135) will be removed meaning less competition from cheap overseas producers.
Minimum wage increases to £12.71 (4.1%). Increase for 18-20 years is 8.5% to £10.85 and 16-17 years is 6.0% to £8.00 per hour.
A £2,000 cap will be introduced in April 2029 on the amount of salary sacrifice that can be used for pension contributions.
Government fully funding SME Apprenticeships for under 25s.
Further freezes on the personal allowance and tax thresholds.
| Salary | Property * |
Savings * |
Dividends ** |
| 20% | 22% | 22% | 10.75% |
| 40% | 42% | 42% | 35.75% |
| 45% | 47% | 47% | 39.35% |
| Unchanged | |||
| * With effect from 06 April 2027 | |||
| ** With effect from 06 April 2026 | |||
Tax rates increases of 2% points for savings, dividends, and property income.
From April 2027, Cash ISAs will be restricted to £12,000 with a further £8,000 ISA allowance available specifically for Stocks and Shares. Over 65s can still use full £20,000 in Cash ISA.
VCT income tax relief will reduce from 30% to 20% from April 2026.
Tightening of the availability and increase of the cost for non-residents to pay into and receive a UK State Pension.
CGT relief on disposals to an Employee Ownership Trust (EOT) reduces from 100% to 50%.
The £1m BPR and APR allowances for Inheritance Tax will remain at this level until 2031, but will transfer between spouses.
Electric car grants will continue to be funded, but a new Electric Vehicle Excise Duty will be charged at 3p/mile and 1.5p/mile for hybrids, from April 2028.
Also from April 2028, a High Value Council Tax Surcharge will be charged annually on the most expensive properties: £2,500 for properties of £2m, £7,500 for over £5m.
No changes to the tax free lump sum on pensions which remains at £268,275.
Tobacco, Alcohol, Sugar, Air Passenger duties/taxes all increase.
Investment in HMRC compliance teams and debt recovery teams to collect more unpaid taxes.
Increased penalty charges for late tax submissions.
Extend the collection of tax from Self-Assessment liabilities through in-year PAYE coding.
Requiring all VAT invoices to be issued in a specific electronic format from April 2029.
Overall, the Budget was less punitive than expected, but tax rises across income streams, capital allowances, investment schemes and property-related charges underline the Treasury’s continued focus on revenue generation. Importantly, many of the more significant changes will not take effect for several years, giving taxpayers and businesses the opportunity to plan ahead. If you would like support in understanding how these future measures may affect you or your business, the Thompson Jenner team is here to help.
Catch up on our Autumn Budget Event, where Head of Tax, Geoff Fraser, provides a clear, concise breakdown of the key announcements from Labour’s Autumn Budget. In this recorded session, Geoff analyses the major changes affecting businesses, employers and individuals, highlights where tax rises will have the greatest impact, and explains which measures are planned for future years. Whether you attended on the day or are watching for the first time, this recording offers practical insight to help you understand what the Budget means for you.
