Autumn Budget 2025: Key Tax Changes for Individuals, Landlords and Businesses
Autumn Budget 2025 – What You Need to Know in Minutes
Quick highlights from the A P Robinson Budget Summary
The Chancellor’s Autumn Budget (26 November 2025) brought a fresh round of tax changes that will affect almost every household and business over the coming years. While some hoped for a softer approach following last year's tax rises, this Budget confirms that freezes and rate increases will continue as the government seeks stability and revenue growth.
Below, we’ve pulled out the must-know updates in a short, readable format.
If you want the full details, charts and explanations, you can download the full 20-page Budget Summary at the end of this blog.
1. Income Tax & National Insurance – More People Paying More
(See full details: page 7)
Income tax thresholds frozen until 2031, meaning more income will fall into higher tax bands over time.
No change to income tax rates on earnings, but the freeze creates “fiscal drag” for millions.
Dividend tax rates rise from April 2026 (basic rate up to 10.75%, higher rate up to 35.75%).
Savings and property income tax rise by 2% from April 2027.
Impact: Almost everyone earning, saving or receiving dividends will pay more tax over the next 5 years.
2. National Minimum & Living Wage Increases
(See page 10)
From April 2026:
National Living Wage (21+): £12.71
Ages 18–20: £10.85
Ages 16–17 & apprentices: £8.00
Impact: Good news for workers; higher payroll costs for employers.
3. Salary Sacrifice Pension Changes
(See pages 2 & 10)
From April 2029, NIC exemptions on salary sacrifice pension payments are capped at £2,000 per year.
Impact: Many employees and employers will see higher NIC bills on pension contributions.
4. Big Changes for Property Owners
(See page 3 & 16)
New ‘mansion tax’: Properties worth £2m+ will pay a surcharge of £2,500–£7,500 per year from April 2028.
From April 2027: Property income tax rates increase by 2% across all bands.
CGT rates remain unchanged.
Impact: Higher annual costs for landlords and owners of high-value homes.
5. ISAs – Cash Savings Limited for Under-65s
(See page 5 & 8)
Overall ISA limit stays at £20,000.
But from April 2027 those under 65 will be limited to £12,000 per year in a cash ISA.
Impact: Younger savers may need to review their investment strategy.
6. Business Owners – Some Relief, Some Pain
(See pages 2, 11, 14 & 17)
The positives:
First-year capital allowances increased to 40% for most new assets from January 2026.
Full expensing for companies continues.
EMI company limits are expanded (from April 2026) with higher employee and asset thresholds.
The challenges:
Writing Down Allowance drops from 18% to 14% (April 2026).
Higher dividend tax for owner-managers from 2026.
Mandatory e-invoicing for VAT from 2029.
No change to corporation tax rates—but no reductions either.
7. Inheritance Tax – Big Shifts for Business & Agricultural Assets
(See page 13)
From April 2026:
Agricultural Property Relief (APR) and Business Property Relief (BPR) are capped at £1 million combined.
Any unused allowance becomes transferable to a spouse or civil partner.
AIM shares BPR drops from 100% to 50%.
Impact: Large family businesses and farms may face higher IHT bills—forward planning is crucial.
8. Company Car & Electric Vehicle Changes
(See page 11)
New electric car duty: 3p per mile (electric) and 1.5p per mile (hybrid).
Benefit-in-kind rules for plug-in hybrids eased until 2028.
BIK charges rise with inflation from 2026.
9. Making Tax Digital – Gradual Rollout Continues
(See page 9)
From April 2026:
MTD becomes mandatory for sole traders and landlords with over £50k income.
Quarterly reporting is required, though penalties for late submissions are eased initially.
10. HMRC – Tougher Penalties & More Digital Changes
(See page 18)
Corporation tax late filing penalties double from April 2026.
Digital letters replace paper by default from 2026.
Stronger rewards for reporting tax evasion (15–30% of recovered tax).
November 2025
Download the complete Autumn Budget 2025 Summary (20 pages)
