My HGH
My HGH
Chancellor Rachel Reeves announced tax increases worth up to £26 billion, achieved through measures such as extending the freeze on Income Tax thresholds for three more years and increasing taxes on property, dividend, and savings income
This summary highlights the key tax and spending changes announced in the UK Autumn Budget 2025. It reflects the government’s fiscal strategy and policy adjustments across personal, employment, business, and capital taxation, as well as other financial measures.
Personal Tax
- From April 2027, the personal allowance will be applied first to employment, trading, or pension income. . Pension tax limits for 2026/27 include an Annual Allowance of £60,000, with tapering for incomes above £200,000, and Lump Sum Allowances of £268,275 and £1,073,100.
- ISA limits remain frozen until 2031, with changes from April 2027 splitting the £20,000 ISA limit into £12,000 cash and £8,000 stocks and shares for under-65s.
- Income Tax thresholds remain frozen until April 2031, with the basic rate band at £37,700, higher rate threshold at £50,270, and additional rate threshold at £125,140. NICs thresholds are aligned with these levels. The additional rate for non-savings and non-dividend income applies in England, Wales, and Northern Ireland, while savings and dividend income rates apply UK-wide.
Employment
- From April 2026, the National Living Wage (NLW) and National Minimum Wage (NMW) rates increase as follows: £12.71 for ages 21+, £10.85 for 18-20, and £8.00 for 16-17 and apprentices.
- From April 2026, recruitment agencies and employment agencies will be responsible for PAYE and NICs on payments to workers supplied via umbrella companies, with joint liability extended to end clients to tackle tax avoidance and protect workers.
- From 2026/27, the Lower Earnings Limit will increase to £6,708 annually, and the Small Profits Threshold to £7,105. Employer NICs relief for hiring veterans is extended until April 2028, exempting employers from NICs up to £50,270 for the first year of a veteran’s civilian employment
Business
- The main Corporation Tax rate remains at 25% for profits over £250,000 from April 2026, with a 19% small profits rate for profits up to £50,000. Marginal relief applies between £50,001 and £250,000. The government commits to capping the main rate at 25% for this Parliament. Penalties for late Corporation Tax returns will double from April 2026.
- A three-year exemption from the 0.5% Stamp Duty Reserve Tax on securities transfers for newly listed companies on UK regulated markets applies from 27 November 2025, excluding mergers or takeovers.
- From April 2027, unused pension funds and death benefits payable from pensions will be included in estates for IHT purposes, with personal representatives responsible for payment.
- Agricultural and business property reliefs will continue at 100% up to a combined £1 million limit per person, transferable between spouses/civil partners and refreshed every seven years, with amounts above receiving 50% relief. The £1 million limits will be frozen until 2031.
More Information
For further details and additional announcements from the Budget, please visit our in-depth PDF:
Need help? Get in touch
If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s Budget speech, please do get in touch with our team. Call us on 01904 655202, or email enquiries@hghyork.co.uk
Alternatively, if you’d like to learn more about how we can help you or your business, take a look at our services page. Whether you’re looking for expert advice, tailored solutions, or support to achieve your goals, we’re here to make a difference.
