A simple guide to the Autumn Budget November 2025. Understand tax rises, frozen thresholds, ISA changes, dividend increases, and future rules. Clear advice and a call to book a Tax Diagnostic with I Hate Numbers.
The Autumn Budget November 2025 delivered a long list of tax changes. Some start now. Others arrive later. Many are quiet “stealth taxes”. This blog explains the changes in clear, simple terms.
The Headline Bad News
Higher Taxes on Dividends, Property, and Savings
The government will increase income tax rates on dividend income, savings income, and property income.
- Dividends: increases from April 2026
- Savings and property income: increases from April 2027
- Additional dividend rate stays the same
If you control when you take income, timing matters more than ever.
Cash ISAs – A Squeeze on Savers
Reduced Allowance for Cash ISAs
- The cash ISA allowance will fall to £12,000.
- However, the total ISA allowance stays at £20,000, but £8,000 will be ring fenced for stocks and shares ISAs.
- Cash only savers will lose flexibility. Now is a good time to review your investment mix.
Pensions – Mostly Stable, but Limits Are Coming
Salary Sacrifice Cap from 2029
No major pension changes landed, which is rare good news. However, from 6 April 2029, only £2,000 of pension salary sacrifice can escape National Insurance each year.
Plan ahead now rather than later.
Electric and Hybrid Cars – New Per Mile Charges
New Charges from April 2028
A new mileage levy will apply from April 2028:
- 3p per mile for electric cars
- 5p per mile for hybrids
These changes affect long term running costs and fleet planning.
Stealth Taxes Extended Until 2031
Frozen Income Tax and NI Thresholds
Most thresholds remain frozen until 6 April 2031, including:
- Personal income tax thresholds
- National Insurance thresholds
- Employer secondary National Insurance threshold
Freezes push more people into higher tax bands over time.
Inheritance Tax Frozen
Nil rate bands and key reliefs remain frozen until 2031.
Student Loan Freeze
Plan 2 repayment thresholds will freeze for three years from April 2027.
Capital Allowances – Timing Matters More
New Structure from April 2026
- Writing down allowance drops from 18% to 14%
- New 40% first year allowance starts 1 January 2026
Investment timing now affects your tax bill more than before.
Dividend Tax – Higher Costs for Owners
Rates Rise from April 2026
- Ordinary rate: 8.75% →75%
- Upper rate: 33.75% →75%
- Additional rate: stays at 39.35%
If your company holds profit reserves, review dividend plans before April 2026.
Property and Savings Income – New Rates and Bands
Savings Income Rates Rise
From April 2027:
- Basic rate: 20% → 22%
- Higher rate: 40% → 42%
- Additional rate: 45% → 47%
New Property Income Bands
From April 2027:
- Property basic rate: 22%
- Property higher rate: 42%
- Property additional rate: 47%
- Finance cost relief will be given at 22%.
ISA Rules for Under 65s
Limits Stay the Same
Under 65s remain limited to:
- £12,000 in cash ISAs
- £20,000 total allowance
Employment and Payroll Changes
Home Working and Benefits
From 6 April 2026:
- Non reimbursed homeworking expenses will no longer be tax deductible
- Employers can still reimburse eligible costs tax free
Exempt benefits now include:
- Eye tests
- Homeworking equipment
- Flu vaccinations
The £2,000 salary sacrifice cap begins April 2029.
What Employers Should Do Now
Review policies, payroll processes, and staff communication before the changes arrive.
Company Cars and Benefits in Kind
New Rules from 2026 and 2028
- Expensive Car Supplement threshold increases to £50,000 from April 2026
- Mileage supplements for electric and hybrid vehicles apply from April 2028
Capital Gains and Incorporation Relief
Relief No Longer Automatic
From 6 April 2026, incorporation relief must be claimed.
Fail to claim and you lose the relief.
Investment Incentives
Higher Limits
- EIS and VCT annual limits rise to £10 million
- Limit rises to £20 million
- Lifetime limits increase to £24 million and £40 million
VCT Relief Falls
VCT income tax relief drops from 30% to 20%.
Action for Investors
Review your investment strategy before and after the rule changes.
VAT Relief for Charities
New Relief from 1 April 2026
VAT relief applies to business donations of goods to charities, where goods support charitable activity or are distributed to those in need.
Rules for Non UK Residents
Changes from April 2026
- Dividend tax credit removed
- No more Class 2 NI contributions to boost state pension entitlement
Other Notable Measures
Fuel Duty and More
- Fuel duty cut extended for five months
- Reversal begins September 2026
- Fuel duty rises with RPI from April 2027
- Corporation tax late filing penalties double from April 2026
- Customs duty relief on imports under £135 ends by March 2029
Final Thoughts – Stay Calm, Stay Informed
The Autumn Budget November 2025 is a slow pressure Budget. Timing and planning matter more now than ever.
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