27/11/2025
๐ ๐๐๐๐๐บ๐ป ๐๐๐ฑ๐ด๐ฒ๐ ๐ฎ๐ฌ๐ฎ๐ฑ - ๐๐ถ๐ด๐ต๐น๐ถ๐ด๐ต๐๐
Chancellor Rachel Reeves has delivered her the 2025 Autumn budget, setting out measures that will impact households, savers, and businesses across the UK. Here are the key highlights:
๐ Tax thresholds frozen until April 2031 - more earners will gradually move into higher bands.
๐ผ Salary sacrifice pensions capped โ contributions above ยฃ2,000 taxed like standard employee contributions from April 2029.
๐ท Minimum wage increase โ ยฃ12.71 per hour for over-21s.
๐ก Cash ISA allowance reduced โ ยฃ12k limit for under-65s, with the remaining ยฃ8k only available in investment ISAs. Over-65s retain the full ยฃ20k cash ISA allowance.
๐ Dividend tax rises โ up 2% from April 2026.
๐ฐ Savings income tax rises โ up 2% across all bands from April 2027.
๐ Property income tax reform โ new rates from 2027โ28: 22% (basic), 42% (higher), 47% (additional).
๐ Electric vehicle duty โ from April 2028: 3p per mile for EVs, 1.5p per mile for plug-in hybrids.
โฝ Fuel duty cut โ 5p reduction frozen until August 2026.
๐ก High-value council tax surcharge โ ยฃ2,500 annually on homes over ยฃ2m, rising to ยฃ7,500 for homes over ยฃ5m from 2028.
๐ก ๐ช๐ต๐ฎ๐ ๐๐ต๐ถ๐ ๐บ๐ฒ๐ฎ๐ป๐ ๐ณ๐ผ๐ฟ ๐๐ผ๐:
With frozen thresholds and rising taxes on dividends, savings, and property income, tax-efficient planning is more important than ever. Reviewing pension contributions, ISA allocations, and property strategies will help mitigate the impact of these changes.
๐ At Kate Bailey Financial Planning Ltd, weโll be sharing further insights in the coming days on how these measures could affect your financial planning.
