The Chancellor has announced the Autumn Budget 2025, outlining steps for long-term stability. Several of these changes will directly affect how individuals and businesses plan their taxes and finances.

Income Tax and National Insurance

• Personal tax thresholds will stay the same from 2028 to 2031. As incomes go up, this could slowly increase your tax bill.
• Starting in April 2029, National Insurance will be charged on salary sacrifice pension contributions above £2,000 a year. This change affects both employees and employers.
• In April 2026, dividend tax rates will go up by two percentage. The basic rate will be 10.75% and the higher rate will be 35.75%.
• From April 2027, taxes on savings income and property income will rise by two percentage at all rates.

Corporation Tax

• From April 2026, the main writing down allowance will drop from 18% to 14%. A new 40% first-year allowance will be available starting January 2026. These changes matter for limited companies planning to invest in assets.

Capital Gains Tax

• Tax relief on disposals to employee ownership trusts will reduce from 100% to 50% from November 2025, which may affect business succession planning.

Excise Duties and Transport

• A new mileage-based charge for electric and plug-in hybrid vehicles will start in 2028. This charge will be about half the fuel duty rate for petrol cars.
• Fuel duty will stay frozen until September 2026. After that, it will rise in stages to reverse the 5p cut made in 2022. Regular yearly increases linked to RPI will start again from April 2027.

Other Key Commitments

• Starting April 2028, people who own properties worth more than £2 million (at 2026 prices) will have to pay a new yearly council tax surcharge.
• The two-child limit for Universal Credit will end completely in April 2026.

What This Means for You

Whether you’re self-employed, run a limited company, or work in the security or maritime sectors, these changes could impact your income, tax planning, and long-term financial strategy. Our team at Whittaker & Co. is here to help you understand the effects and plan accordingly, so you stay ahead and avoid surprises.

​