Autumn Budget 2025 - key points from re:accounts, Stevenage

Rachel Reeves delivered her second Autumn Statement today (26 November), finally putting an end to the rumours swirling for weeks. Now that the dust has settled, what does it all mean for you and your business?

If you have any queries, let us know. The team at re:accounts in Stevenage is always happy to help. You bring your questions, we’ll offer answers, solutions… and coffee.

Here’s a straight-talking rundown, with some handy action tips at the end:

Personal Tax

Frozen thresholds:
The income tax and National Insurance bands remain unchanged until 2028. This means more people will drift into higher tax brackets over time — even without earning more in real terms.

ISA annual allowances:

Stocks & Shares ISA allowance stays at £20,000.
Cash ISA allowance drops to £12,000 for those under 65.
Savers aged 65+ keep the full £20,000 cash ISA option.

Dividend & savings:
For dividends and savings expect a 2% increase to both basic and higher rates.

Pension salary sacrifice cap:
A £2,000 annual cap comes into force in 2029, tightening the rules for tax-efficient contributions.

Making Tax Digital for Income Tax:

The timescale has not changed, starting in April 2026 with individuals earning more than £50,000 of qualifying income annually.

There are so many tax bands and changes to keep up with! (We’ve reached nine and we’re still counting!) Don’t worry – our team stays fully up to date. We’ll make sure the right rates are applied to your accounts.

Property:

row of birdhouses New property income tax bands (from April 2027):

Basic rate: 22%
Higher rate: 42%
Additional rate: 47%
Finance cost relief will be aligned with the new basic property rate.

The widely expected “mansion tax” is now official. This involves a new annual charge of £2,500 on homes valued at over £2 million, and £7,500 on homes valued at over £5 million. This involves revaluing properties in bands F, G and H, and the surcharge will be collected through council tax.

Business Tax

silhouettes of business women

Business tax rates and thresholds remain unchanged but employers will still feel pressure thanks to Minimum Wage increases. (see below)

Some good news for specific sectors: retail, hospitality and leisure properties will benefit from permanently reduced tax rates. In addition, English regional mayors will also gain powers to introduce tourist taxes on overnight stays, mirroring schemes already in Scotland and Wales.

In the gaming world, online gambling profits jump from a 21% to a 40% tax rate, while the 10% bingo tax is being scrapped.

Benefits & Wages

The controversial two-child limit on Universal Credit and Child Tax Credit will be removed from April 2026.
National Minimum Wage for 18–20-year-olds rises from £10 to £10.85.
The Living Wage increases to £12.71 an hour.
SMEs gain access to fully funded apprenticeships.

Transport

Rail fares frozen for another year.
Fuel duty stays as is until September 2026.
A new EV and plug-in hybrid tax arrives in 2028.
The Motability scheme will exclude premium vehicles going forward.

Other Announcements

The government is planning a crackdown on CIS fraud and aggressive tax avoidance schemes. Also confirmed: the sugar levy will extend to milk-based drinks — think lattes and milkshakes — starting 2028.

Tax Planning Strategies

With the above changes in mind, what action should you take? Here are some starting thoughts:

Use salary sacrifice to optimise your pension investment from now until April 2029.
Review your annual income. If you’re close to the next band of income tax liability, look at other options. This could involve increasing pension or gift aid, reduce hours or increasing holiday, for example.
Make the most of the current cash ISA allowance (£20,000pa) before April 2027. Consider other saving strategies that could work for you.
If you’re thinking about investing in property, work out the projected returns after increased tax and Renters Right Act make the investment a bad idea and adjust your strategy accordingly. (The Renters Right Act abolishes no-fault evictions from April 2026. The other changes, such as maximum upfront rent of one month, were introduced on 13 November 2025.)