Autumn Budget 2025 – at a glance
TodiscusstheAutumnBudgetandplanningahead,emailenquiries@om.ukorspeaktoyourusualOldMillcontact.
Individual
IncomeTax(IT)
IncomeTaxandNationalInsurance thresholdswillcontinuetobefrozen forafurther 3yearsfrom2028.
DividendrateschangingfromApril 2026:
• Basicrate:8.75%to10.75%,
• Higherrate:33.75%to35.75%
• Additionalratewillremain unchangedat39.35%
SavingsratechangingfromApril 2027:
• Basicrate:20%to22%,
• Higherrate:40%to42%,
• Additionalrate:45%to47%
FromApril2027,therewillbea separaterateoftaxforproperty income.Thesewillbethesameasthe newsavingsrates.
NationalInsurance
From6 April2026,individualswillno longerbeabletopaynational insuranceforperiodsabroad.
Pensions
From2029,NationalInsurance (employeeandemployer)willbe chargedonsalarysacrificeinto pensionsaboveanannual£2,000 threshold.
April2026–StatePensionwill increaseby4.8%.
Minimumwage
Minimumwageincreasingfrom£12.21 to£12.71per hour.
NationalMinimumWagefor 18to20year-oldswillincreasefrom £10to £10.85per hour–workingtowardsa singleadult rate.
InvestmentSavingsAccounts (ISA)
The£20,000ISAallowanceisto remainthesamewiththecashISA allowancetobereducedto £12,000forunder 65s.
MansionTax
AhighvalueCouncilTaxsurcharge onpropertiesworth over£2m willbeintroducedfromApril2028.
Housesworth £2mwillseeacharge of£2.5kper annum,increasingto £7.5kforhousesworthover£5m.
TwoChildBenefitCap
Thetwochildbenefitcap willbeabolishedfrom April2026.
InheritanceTax(IHT)
Thenew£1millionAgricultural PropertyRelief(APR)andBusiness PropertyRelief(BPR) allowance, comingintoforcefromApril2026, canbetransferredbetween spouses.
Business
CapitalAllowances
A40%FirstYearAllowance(FYA)will beintroducedfrom1January2026 formainpoolexpenditure,ontopof existingallowancessuchasAnnual InvestmentAllowanceandFull Expensing(thelatterapplyingto companiesonly).
ReductiontothemainpoolWriting DownAllowance(WDA)from18%to 14%fromApril2026.
TheEnterpriseManagement Incentiveschemeeligibilitylimits havebeenvastlyexpandedtoallow morecompaniestoofferthetaxadvantagedschemetotheir employees.
CapitalGainsTax(CGT)
ReducedCGTreliefondisposalsto EmployeeOwnershipTrusts(EOTs) from100%to50%,effectivefrom26 November2025
InvestmentSchemes
TheEnterpriseInvestmentScheme andVentureCapitalTrustsschemes willhaveinvestmentlimitsincreased, butVCTincometaxreliefreducingto 20%fromApril2026.
Economy
Inflation
TheOfficeforBudget Responsibility forecastsinflationtoaverage3.5%in 2025,decreasingto 2.5%in2026and returningtothegovernment's2% targetin2027.
Duties
FuelDuty
FuelDuty toremainfrozenatcurrent levelsuntilSeptember2026.
GamblingDuty
IncreasingremoteGamingDutyfrom 21%to40%.Duty ononlinebettingwill increasefrom15%to25%andBingo Dutywillbeabolished.
StampDutyReserveTax
AthreeyearStampDuty exemption willapplyforcompaniesnewlylisting onaUKregulatedmarket.
Otherpoints
Mileage-basedcharge
Anewmileage-basedchargeon batteryelectricandplug-inhybrid carsfromApril2028at3ppermile forelectriccarsand1.5pforhybrid.
SugarTax
Taxonsugarydrinksexpandingto coverpre-packagedmilkshakes andcoffees.
Apprenticeships
Trainingfor under25sthrough apprenticeshipswillbemadefree forsmallandmedium-sized enterprises.
ShareSchemes