Autumn Budget 2025: What it means for your business

The Chancellor’s latest budget brings big changes that will impact everyone in 2026 and beyond.

Here are the key points you need to know:

Businesses

  • Tax Changes Dividend tax rates rise by 2% from April 2026 – making profit withdrawals more expensive. Income tax & NI thresholds frozen until 2031, increasing the overall tax burden.

  • Business Support Permanent lower business rates for retail, hospitality & leisure – worth £900m/year. £4.3bn support package to cap increases for sectors hit by revaluations. Investment incentives retained: 40% First Year Allowance and £1m Annual Investment Allowance.

  • Employment Costs National Minimum Wage rises to £12.71/hour from April 2026 – plan for higher payroll costs.

  • Economic Outlook Inflation forecast: 3.5% in 2025, easing to 2.5% in 2026. Growth remains modest – making financial planning more important than ever.

What does this mean for you?

  • Review your salary vs dividend strategy.

  • Plan for higher wage costs.

  • Take advantage of business rates relief and investment allowances.

Personal Finances

  • Tax Changes Income tax & NI thresholds frozen until 2031 – more people will move into higher tax bands as wages rise. Dividend and savings tax rates up by 2% from April 2027 – impacting investors and business owners.

  • Savings & Pensions ISA allowance cut to £12,000 from April 2027 (under-65s). Salary sacrifice cap for pensions – only the first £2,000/year exempt from NIC from 2029.

  • Property & Wealth Mansion tax: Homes over £2m face annual charges from April 2028. Higher taxes on investment income.

  • Everyday Costs National Living Wage rises to £12.71/hour from April 2026. Energy bills drop by ~£150/year thanks to levy cuts. EV mileage tax (3p per mile) starts in 2028.

Family Support

  • Two-child benefit cap scrapped from April 2026 – more help for families.

What does this mean for you?

  • Plan for a higher tax burden.

  • Review your pension and savings strategy.

  • Factor in property and lifestyle costs for the years ahead.

Need help navigating these changes?

Let’s talk about how to protect and grow your wealth.

Published 27 November 2025

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