Autumn Budget 2025 highlights

Please see our glossary for information on the financial terms used in this article.

After months of speculation, and an accidental early peak, courtesy of the Office for Budget Responsibility (OBR), Chancellor Rachel Reeves finally delivered her Budget on Wednesday 26 November. Here’s a short summary of the key points that might be of interest. 

Key points to note

• Income tax and national insurance (NI) thresholds freeze: extended for another three years from 2028 until April 2031 which means more people will pay higher rates as their pay rises over time
  
  
• Salary sacrifice for pensions: salary sacrifice pension contributions above the new cap of £2,000, will be taxed in the same way as other employee pension contributions from April 2029
  
  
• Minimum wage increase: to £12.71 per hour for anyone over 21
  
  
• Cash ISA allowance reduces: to £12,000 a year, within the overall annual ISA limit of £20,000. The remaining allowance of £8,000 could be used in Stocks and Shares ISAs. Over 65s however, retain the full cash ISA annual allowance of £20,000
  
  
• Tax on dividend income: will increase by two percentage points for the ordinary and upper rate from April 2026
  
  
• Tax on savings income: will also increase by two percentage points across all bands from April 2027
  
  
• Changes to tax on property income: new separate tax rates will be introduced from 2027-28. The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%. The bands will apply across England, Wales and Northern Ireland, the rates will apply in England and Northern Ireland. We have to wait and see what the devolved governments do on property income tax rates
  
  
• New high value council tax surcharge: sometimes called a ‘mansion tax’ – £2,500 a year on properties over £2m in England, increasing to £7,500 for properties over £5m from 2028
  
  
• Electric vehicles: new excise duty introduced on electric vehicles from April 2028 at 3p per mile for electric cars and 1.5p per mile for plug-in hybrids
  
  
• 5p fuel duty cut: frozen until the end of August 2026

It’s important to know tax rules can change and the impact of taxation, and any tax relief, depends on your personal circumstances.

Getting financial advice and support

It’s likely that the changes in the Autumn Budget will impact your finances in one way or another. If you are looking for help to navigate any of these changes or to help manage your finances in general, speaking to a financial adviser could be of real value.

A financial adviser will look at your overall situation and longer-term goals to create a manageable plan for you.

If you don’t already have an adviser you can find a financial adviser that's right for you. Visit our ‘Get financial advice’ page to find out more.

Source: gov.uk/government/topical-events/budget-2025
 

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.