Autumn Budget 2025 Highlights!

👩‍💼 Personal Taxes & Thresholds

Income tax and National Insurance thresholds will stay frozen until April 2031:

• Personal Allowance: £12,570

• Higher‑rate threshold: £50,270

• Additional‑rate threshold: £125,140
  This means as wages rise over time, more people will pay higher tax without any change in rates — a “stealth tax”.

💷 Dividend Tax (From 6 April 2026)

Dividend tax rates will increase by 2 percentage points:

• Basic rate: from 8.75% → 10.75%

• Higher rate: from 33.75% → 35.75%

• Additional rate: 39.35% (unchanged)

This affects business owners who take income as dividends.

🏠 Savings & Property Income (From 6 April 2027)

Tax rates on savings interest and rental (property) income will rise:

• Basic rate: 20% → 22%

• Higher rate: 40% → 42%

• Additional rate: 45% → 47%

📈 National Living Wage & Minimum Wage (From April 2026)

• National Living Wage (age 21+): £12.71/hr (was £12.21)

• 18‑20 yr olds: £10.85/hr (was £10.00)

• 16‑17 yr olds & apprentices: £8.00/hr

🏡 Other Key Measures

• Cash ISA limits cut: From April 2027, under‑65s can only put £12,000 of the annual £20,000 allowance into a cash ISA.

• High‑Value Council Tax Surcharge (from April 2028):

  • Properties £2m+ pay £2,500/year

  • Properties £5m+ pay £7,500/year

• Salary sacrifice pension NIC cap (from April 2029): NICs apply to contributions above £2,000 per year.

🚆 Cost of Living & Other Social Support

• Rail fares frozen for another year — saving many commuters around £300/year if fares had increased.

• State Pension increased thanks to the “triple lock”, giving retirees roughly an extra ~£550/year compared with if uprated by inflation alone.

• The two‑child limit in Universal Credit will be removed from April 2026, increasing support for many families.

📌 What This Means in Simple Terms

• Most people will gradually pay more tax even if rates don’t rise, because thresholds are frozen.

• Business owners and directors paying themselves in dividends will see higher tax from April 2026.

• Landlords and savers will pay more tax on income from property and savings from April 2027.

• Workers benefit from higher minimum wages.

• Some benefit and support measures (like pension increases and UC changes) help households.