Autumn Budget 2025

Key Tax & Income Changes:

• Income Tax/NICs: Personal allowance and thresholds frozen until April 2031; National Insurance thresholds also frozen.

• Dividend Tax: Rates increased by 2 percentage points for basic/higher rates from April 2026.

• Fuel Duty: "Temporary" 5p cut extended to September 2026.

• Universal Credit: Two-child limit scrapped from April 2026; uprated by 6.2% from April 2026.

• ISA Limits: Cash ISA max subscription reduced for under-65s from 2027/28, but overall ISA limit stays £20k.

• Gambling Duties: Remote Gaming Duty rises to 40% (April 2026); new 25% Remote Betting Duty from April 2027; Bingo Duty abolished. 

Key Spending & Investment:

• Rail Fares: Frozen in England for 2026.

• Motability: Premium cars excluded from scheme.

• Business Investment: Accelerated Investment Incentive reinstated; new 40% first-year allowance for certain assets from Jan 2026.

• Child Benefits: Two-child limit removed. 

New & Future Measures:

• EV Tax: Pay-per-mile charge for EVs/hybrids from April 2028.

• Council Tax: High-value surcharge on properties over £2m from April 2028.

• Salary Sacrifice: Capped at £2,000/year for pensions from 2029/30. 

  
  

Economic Context:

• UK GDP growth forecast for 2025 upgraded to 1.5%.

• Overall tax take forecast to rise to 38% of GDP by 2030/31, increasing fiscal headroom.