26 Nov 2025
Autumn Budget 2025: A Summary
After months of much speculation and uncertainty, Chancellor Rachel Reeves has delivered the Autumn 2025 budget. We have summarised the government's plans for tax and spending below.
Property
- Property, savings and dividends income tax rate has been increased by 2%
- Homeowners with properties worth over £2m will be required to pay a high value council tax surcharge from April 2028 which will be collected alongside council tax. The tax will be banded: £5m+ = £7,500, £2m-2.5m = £2,500
- Property income tax will rise by two percentage points from April 2027
Income tax
- No increase in the rate of income tax, national insurance or VAT
- Income tax thresholds have been frozen for a further three years (2028 to 2031)
- From April 2026 the basic and higher rates of dividends tax will rise by 2% to 10.75% and 37.5
Savings, Pensions & Benefits
- The £20,000 ISA annual limit will be dropped to £12,000 from April 2027 (excluding those over 65)
- Salary-sacrificed pension contributions above the £2,000 threshold will no longer be exempt from National Insurance from April 2029
- State pension will rise under the "triple lock" policy from April 2026
- The two-child benefit cap will be lifted from April 2026
- Minimum wages will rise in April 2026 - 18-20 year-olds from £10 to £10.85 and 21+ from £12.21 to £12.71 per hour.
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