Autumn Budget 2025: what it means for businesses and individuals

Описание: The Autumn Budget arrived after weeks of speculation and more leaks than any Chancellor would hope for. And after all that buildup, the final announcement was fairly restrained.

Rachel Reeves set out forecasts showing the UK economy growing by 1.5% in 2025, with a clear message of stability and steady growth. Much of the focus was on encouraging investment and entrepreneurship. As ever, we will need to see how these measures play out in practice.

Key points for businesses
Corporation Tax remains at 25% and it is probably interesting to note that this rate is still competitive when compared internationally.

Dividend tax will rise by 2% from 6 April 2026, but only at the basic and higher rates:

Basic rate: 8.75% increasing to 10.75%
Higher rate: 33.75% increasing to 35.75%
The additional rate of 39.35% is unchanged
Property tax will also increase by 2% across all bands, but not until 6 April 2027, when rental income will be taxed at:

22% (basic rate)
42% (higher rate)
47% (additional rate)
Salary sacrifice for pensions will attract NICs above £2,000 from 2029, so it’s worth reviewing remuneration strategies early.

Property owners should also be aware of a new annual High Value Council Tax surcharge taking effect from April 2028. This starts at £2,500 for homes valued at £2 million or over, rising to £7,500 for properties above £5 million. A public consultation on details relating to the surcharge will be held in 2026 and the government will also consult on reliefs and exemptions together with complex ownership structures and tied property.

On the investment front, EIS and VCT limits are doubling.

Personal tax and savings
Some employee incentives are becoming more flexible and expanding to allow a wider range of companies to offer tax advantaged EMI share options to their employees from 6 April 2026.

National Insurance thresholds are frozen until April 2031, with the entry point for NI remaining at £12,570. This will draw more lower earners into paying NI over time.

Income tax rates and thresholds are also frozen until 2031. As wages rise with inflation, more people will move into higher tax brackets.

From April 2027, the annual allowance for Cash ISAs will fall from £20,000 to £12,000 for those under 65.

There were no major changes to Capital Gains Tax announced, other than the 50% exemption for disposals of businesses into an Employee Ownership Trust (currently 100% exemption). Further, as a reminder, Business Asset Disposal Relief remains set to rise to 18% from 14% in April 2026.

No reforms to Stamp Duty/SDLT, and no shift in VAT rates or thresholds, despite rumours before the Budget.

What does this mean overall?
For SMEs, there may be some opportunities to invest and plan for growth. But the wider picture is a steady increase in personal tax burdens and compliance costs for individuals and business owners alike.

If you’d like to talk through these changes and what they might mean for your plans, please get in touch.