01/12/2025
Income tax thresholds frozen till 2030/31 The personal allowance and all major income-tax thresholds stay frozen for another three years, meaning more people will drift into higher tax bands.
Two-child limit scrapped The widely derided two-child limit for Universal Credit is abolished. Larger families may see higher entitlements so it’s important to check how any benefits might interact with other financial planning.
Fuel duty: increases coming 2026/27 Fuel duty will rise in stages from in September 2026 by 1p, 2p more in December 2026 and a further 2p in March 2027. Keeping an eye on your motoring costs will become more important, especially for business fleets.
Electric vehicles to face per-mile tax from 2028 Mileage-based taxation is here to stay, with a new eVED starting in April 2028. Most EV drivers will initially pay about £240 a year with plug-in hybrids paying less.
High-value council tax surcharge from 2028 Owners of homes valued at £2 million or more will pay a new charge in addition to existing council tax liabilities as the much argued over ‘mansion tax’ is ushered in.
Cap on salary-sacrifice NIC advantages From April 2029, only the first £2,000 of pension salary sacrifice is NIC-free. Employers and higher earners have three years to revisit remuneration and pension strategies.
ISA rules to tighten from April 2027 The ISA limit remains at £20,000, but under-65s will have to invest at least £8,000 of that in stocks and funds, not cash. Time for cash-heavy ISA savers to rethink how they allocate their funds.
Business rates to be reformed from April 2026 Retail, hospitality and leisure properties under £500,000 will qualify for lower multipliers permanently. Large properties face a new high-value multiplier.
Approver Quilter Financial Limited and Quilter Financial Services Limited. November 2025.
