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The UK Autumn Budget 2025 announced tax and benefit changes that take effect in stages from 2026 to 2029. The biggest personal-finance effects are a further freeze on Income Tax and equivalent National Insurance thresholds, higher tax rates on some investment income, and a new charge on high-value homes. This guide sets out what was announced, when it is due to start and who may be affected.
What was announced in the Autumn Budget 2025?
Rachel Reeves presented the Budget to Parliament on 26 November 2025. HM Treasury published the Budget documents and supporting papers, and the Office for Budget Responsibility (OBR) published updated forecasts alongside the statement. The measures below are announced policies; their detailed operation depends on the relevant legislation and HMRC guidance.
The changes do not all start at once. Some affect income earned or received from April 2026, while other measures begin in 2027, 2028 or 2029. OBR figures are forecasts, not guaranteed tax receipts or individual savings.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchIncome Tax and National Insurance thresholds stay frozen for longer
Income Tax and equivalent National Insurance thresholds are to remain at their current levels for a further three years, from April 2028 through 2030/31. The OBR estimates this extension will raise £23 billion in total by 2030/31. That is a forecast of the policy’s overall receipts, not the amount any one person will pay.
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For 2028/29 to 2030/31, HMRC’s policy and legislation overview gives a Personal Allowance of £12,570, a basic-rate limit of £37,700 and a higher-rate threshold of £50,270. These are the stated thresholds; Scotland sets its own Income Tax rates, so Scottish taxpayers should not assume that the rates and bands applying elsewhere in the UK apply to them.
A freeze can increase someone’s tax bill even if their tax rate does not change: when pay rises while thresholds stay fixed, more income may fall into taxable income or a higher band. The effect depends on a person’s income, circumstances and the tax rules that apply to them.
Tax rates on dividends, savings and property income
The Budget changes rates for different kinds of income on different dates. The following rates are the announced rates for the specified categories and start dates; they are not a single set of rates for all investment income.
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| Income type | Start date | Basic rate | Higher rate | Additional rate |
|---|---|---|---|---|
| Dividends | 6 April 2026 | 10.75% ordinary rate | 35.75% upper rate | 39.35%, unchanged |
| Savings income | 6 April 2027 | 22% | 42% | 47% |
| Property income in England, Wales and Northern Ireland | 6 April 2027 | 22% | 42% | 47% |
HMRC’s overview notes devolution arrangements for property-income rates. Tax treatment can depend on where the taxpayer lives and the type of income, so landlords and investors should check the rules applying to their circumstances rather than treating the table as a universal rate schedule.
Salary-sacrifice pension contributions and National Insurance
From April 2029, only the first £2,000 of each employee’s pension contribution made through salary sacrifice is to remain exempt from employer and employee National Insurance contributions (NICs). Contributions above that amount would no longer receive the NIC exemption under the announced change. This limit concerns the NIC treatment of salary sacrifice; it does not, by itself, establish a £2,000 limit on pension saving or pension tax relief generally.
The OBR forecasts additional receipts of £4.7 billion in 2029/30 and £2.6 billion in 2030/31 from the measure. These are forecast receipts for the policy, not estimates of the NIC change for an individual employee or employer.
New annual charge on homes valued above £2 million
A High Value Council Tax Charge is due to start in April 2028 for homes valued above £2 million. The House of Commons Library gives an annual charge of £2,500 for properties valued from £2 million to £2.5 million, rising to £7,500 a year for properties valued above £5 million. The supplied bands establish those endpoints; they do not set out every intermediate band here.
The OBR forecasts £0.4 billion a year in receipts from 2028/29. That is a forecast, and the annual charge is separate from existing Council Tax.
Fuel duty: temporary cut extended, then withdrawn in stages
The temporary 5p-per-litre fuel-duty cut is extended to September 2026. It is then scheduled to be reversed in stages between September and December 2026, followed by RPI uprating from April 2027. The extension therefore delays the planned reversal; it does not make the 5p cut permanent.
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Universal Credit two-child limit removed
The two-child limit for Universal Credit is due to be removed from April 2026. This is a benefit change, rather than an Income Tax change. The House of Commons Library reports that the removal is expected to reduce child poverty by 450,000 children by 2029/30 compared with what would otherwise have happened. It gives a forecast cost of £2.4 billion in 2026/27, rising to £3.2 billion in 2030/31. Both figures are forecasts, not guaranteed outcomes.
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Business investment allowances
The Budget tax overview records a 40% first-year allowance for qualifying expenditure incurred on or after 1 January 2026. It also records a 14% main-rate writing-down allowance from April 2026. These are business tax allowances, not personal tax rates; whether expenditure qualifies depends on the applicable rules.
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Venture capital and carried interest
Venture Capital Trust (VCT) Income Tax relief is reduced from 30% to 20% from 6 April 2026. Revised carried-interest rules also start on 6 April 2026.
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Employee Ownership Trust disposals
For disposals from 26 November 2025, Employee Ownership Trust Capital Gains Tax relief is restricted to 50% of the gain. The change applies from the date of the Budget announcement, rather than from the start of a later tax year.
What the Budget forecasts for Capital Gains Tax and Inheritance Tax
HM Treasury’s Budget document forecasts Capital Gains Tax receipts of £30 billion and Inheritance Tax receipts of £14.5 billion by 2030/31, based on HMRC re-costings certified by the OBR. These are projections of total receipts, not the amount of a new charge on an individual. They should not be read as a statement that the Budget raised either tax rate.
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How to work out whether a change affects you
- Identify the income or asset involved. Employment income, dividends, savings interest, rental income and salary-sacrifice pension contributions follow different measures.
- Check the effective date. A rate applying from 6 April 2026 is distinct from one starting in April 2027, 2028 or 2029; the date can determine which tax year is affected.
- Check your UK nation and circumstances. Scottish Income Tax rates are set by the Scottish Parliament, and HMRC notes devolution arrangements for property-income rates.
- Confirm the detailed rule before making a decision. The announced dates and headline figures are not a substitute for checking the legislation and HMRC guidance relevant to your tax year and situation.
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