Autumn Budget 2025: What It Means for Your Business, Your Finances, and Your Future
27/11/25
The Autumn Budget 2025 brings a range of changes to tax, National Insurance, business investment, and estate planning, all of which could influence the decisions you make in the months and years ahead. Whether you’re growing a business, managing investments, balancing personal and professional finances, or planning, here’s what you need to know.
How will personal tax and savings be affected?
- Income Tax thresholds remain frozen until 2031, meaning more income could fall into higher tax bands over time.
- Property income rates from 2027/28: 22% (basic), 42% (higher), 47% (additional).
- Dividend rates rise 2% for basic and higher bands from 2026/27; the additional-rate remains 39.35%.
- Savings income rates increase 2% from 2027/28.
- From April 2027, some reliefs must be applied to other income before property, savings, or dividend income.
- Cash ISA limit: £12,000 from April 2027; savers aged 65+ can still save £20,000.
- National Insurance thresholds mostly stay frozen until 2031, with minor increases from 2026/27.
This affects anyone planning personal finances or looking to optimise income from investments or property.
What’s changing for employment and payroll?
- From April 2029, NICs will apply to pension contributions above £2,000 made through salary sacrifice.
- Employer NIC relief for hiring veterans is extended to April 2028.
- Minimum wage increases from April 2026:
- National Living Wage: £12.71/hr
- 18-20-year-olds: £10.85/hr
- 16-17-year-olds and apprentices: £8.00/hr
- Van and car benefit charges rise with CPI from April 2026.
- Changes to Employee Car Ownership Schemes are postponed until 2030.
Businesses employing staff or running payroll should review budgets and benefits packages.
What does this mean for business investment?
- A 40% First Year Allowance applies to most main-rate assets from January 2026.
- Writing-down allowances reduce from 18% to 14% from April 2026.
- The 100% allowance for zero-emission cars and EV charge points is extended to 2027.
- The EMI scheme expands from April 2026, increasing employee and company limits.
- VCT and EIS investment limits rise, but VCT relief drops from 30% to 20%.
- UK Listing Relief provides a three-year exemption from Stamp Duty Reserve Tax for new listings from November 2025.
Relevant for businesses planning growth, investment, or succession strategies.
What’s changing for capital taxes and estates?
- Inheritance Tax nil-rate bands frozen until 2031.
- £1 million combined allowance for Agricultural and Business Property Relief remains until 2031, with unused allowance transferable between spouses from April 2026.
- Capital Gains Tax relief on Employee Ownership Trust disposals falls from 100% to 50% from 26 November 2025.
Important for those planning estates, property holdings, or business succession.
Other measures to be aware of
- High Value Council Tax Surcharge for properties in England worth £2m+ from 2028/29.
- Temporary 5p fuel duty cut extended five months, phased reversal from September 2026.
- Removal of the two-child limit in Universal Credit from April 2026.
- HMRC powers strengthened to tackle CIS fraud and marketed tax avoidance.
- Tax advisers will not be regulated, but the government will work with the sector to raise standards.
Next steps
The Autumn Budget 2025 brings a lot to consider, whether you’re managing personal finances, running a business, or planning for the future.
At mgr, we can help you understand how these changes affect your situation, optimise tax planning, and make the most of the opportunities available.
Download our full report here
Reach out today to see what this Budget means for you and your plans.
