Autumn Budget 2025

The most surprising thing about the latest Budget was that someone at the Office for Budget Responsibility appears to have pressed the wrong button and published its report about 40 minutes before the Chancellor stood up, rather than just after she sat down. This meant that the pundits were discussing the contents of the Budget before it had been delivered, which was unprecedented.

The Deputy Speaker had a different complaint: she rebuked the Chancellor for airing her plans in the media during the past weeks. This has become increasingly common, in place of the traditional silence and secrecy until the day itself, but the leaking – and changing – of plans this year was at a different level.

The Deputy Speaker called it a discourtesy to Parliament, but it also risks disturbing the financial markets. All this meant that many of the main measures were well known in advance.

However, the Treasury document that was only released at the end of the speech contained a mass of detailed measures, some coming into effect immediately, others deferred for one, two, three or even more years.

These had to be read carefully to be sure of which rumoured possibilities had not been implemented after all. The Chancellor has spoken about ‘those with the broadest shoulders’ bearing the greatest burden. There is no doubt that the better off will be paying more tax under this Budget, and some of those on welfare are likely to be receiving more benefits.

Whether you consider this fair is a political matter. In the full document we have summarised the main tax proposals and their impact, and also included reminders of some matters announced in previous Budgets but only now coming into force. If you would like to discuss what it all means for you, we will be happy to help.

Significant points

• Personal tax allowances and rates on general income frozen for a further three years to April 2031.
• Also frozen: NICs employer threshold and upper earnings limit, and IHT nil band, to April 2031; Plan 2 Student Loan repayment threshold to April 2030
• No immediate changes to reliefs on pension schemes, but salary sacrifices above £2,000 to be subject to National Insurance from April 2029
• Increases in income tax rates on dividend income from April 2026, and on rental and savings income from April 2027
• Only minor changes to Inheritance Tax rules announced last year
• ISA investment limits and rules remain the same, but from April 2027 new £12,000 limit for cash within the £20,000
• Corporation tax rates unchanged, but Writing Down Allowances reduced from April 2026; new FYA from 1 January 2026
• Council tax surcharge on properties worth over £2 million to apply from April 2028

If you need any help understanding how the budget will affect you or your business, please don’t hesitate to get in touch with us.