Autumn Budget 2025

Income tax and National Insurance thresholds frozen until 2031

Thresholds will now remain frozen for an additional three years beyond 2028.

Cash ISA limit will reduce for under-65s


For savers under 65, the Cash ISA allowance will be capped at £12,000 from April 2027. The remaining portion of the £20,000 annual limit must be invested rather than held in cash.

Dividend tax rates to increase

From April 2026, dividend tax rates will rise by 2 percentage points. This means any dividend you receive on top of any other income will change to the following:

• Basic rate (between £12,570 and £50,270): from 8.75% to 10.75%
• Higher rate (between £50,271 and £125,140): from 33.75% to 35.75
• Additional rate (above £125,140): from 39.35% to 41.35%

New cap on pension salary-sacrifice schemes


From 2029, salary-sacrifice pension contributions above £2,000 will be taxed in line with standard employee pension contributions.

New “mansion tax” for high-value homes

The “mansion tax” will apply from 2028, with properties valued over £2 million charged £2,500 annually, and those over £5 million charged £7,500.

The two-child benefit cap will be scrapped from April 2026

This change could alter household budgets and long-term financial planning for many families.

Other notable announcements

• Electric vehicle excise duty introduced:
  • 3p per mile for electric cars
  • 1.5p per mile for plug-in hybrids
• Gambling tax on remote gaming will rise from 21% to 40%.
• Infected blood compensation will be exempt from inheritance tax.
• Additional funding will go to devolved governments, local leaders, libraries and playgrounds.
• Free apprenticeship training for under-25s in SMEs.
• Motability scheme reforms will remove luxury vehicles.