The Autumn Budget 2025
Below is a summary of the key updates from today’s Budget. Please note that further details will be sent out in the full Budget report later this week.
Source: The Guardian
PENSIONS
Under the governments plans, only the first £2,000 of annual pension contributions made via salary sacrifice will remain exempt from National Insurance. Any contributions above this £2,000 limit will attract the usual employee and employer NI charges.
This will come into effect from April 2029.
ISA ALLOWANCES
From April 2027 the amount you can save each year into a cash ISA will be reduced from £20,000 to £12,000 for anyone under the age of 65. The overall ISA allowance remains £20,000, but anything above the £12,000 cash limit would need to be placed into stocks and shares within an ISA.
Anyone aged 65 or over will continue to have access to the full £20,000 cash ISA allowance.
PROPERTY, SAVINGS & DIVIDEND INCOME
From April 2026, dividend tax will rise, with the basic and higher rates increasing to 10.75% and 35.75%.
From April 2027, tax on property and savings income will increase by two percentage points, rising to 22%, 42% and 47% for the basic, higher and additional rates respectively.
MANSION TAX
From April 2028, there will be a new tiered surcharge on homes valued above £2 million. Higher value properties will attract a larger charge. This is effectively a mansion tax and reflects a clear move towards increased taxation of property wealth.
INCOME TAX
Income tax thresholds remain frozen until 2031, which means that as earnings rise more people will be drawn into higher tax bands. Even without a change to headline tax rates, this freeze increases the overall amount of tax individuals will pay over time, particularly for those receiving pay rises or moving into higher income brackets.
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