The Autumn 2025 UK Budget
Rachel Reeves, the Chancellor of the Exchequer, yesterday, rolled out the Labour Government’s second Budget since coming into power. The Chancellor’s stated aim with this Budget was “Cutting the cost of living, cutting NHS waiting lists and cutting the cost of debt”.
Our initial thoughts on this budget was a sigh of relief, the speculation around this budget was high. There were talks of income tax increases and VAT rates increasing. Reeves thankfully didn’t do this, but again it is take take take with little hope of the burden lifting for working people, similar to the way it’s been for the last few years.
If you would like to see our detailed breakdown of the budget you’ll find it here.
For Individuals
The changes impacting on individuals include the increase of income tax rates on dividend income from April 2026, new separate higher tax rates for rental and savings income from April 2027 and the high value council tax surcharge on properties valued in excess of £2 million (also called “The Mansion tax”).
There has also been a new cap introduced on salary sacrifice pensions of £2,000. Salary sacrifice pensions can still be paid above this amount but now the government expect national insurance from both the employee and employer on anything over and above £2,000.
Reeves has also extended the freeze of the personal allowance for a further three years (now frozen until 2031). On the face of it this seems harmless, but with wages rising and this will drag more and more people into higher rates of income tax.
For Business
The changes impacting on businesses include; changes to the capital allowance tax rules, the loss of 100% capital gains tax relief on the disposal of shares to an Employee Ownership Trust, along with a relaxation to the Enterprise Investment Scheme rules.
There are lots of opportunities and issues to consider following this Budget for businesses, individuals and families. We are here ready to help.
We believe it’s important to discuss all plans you are considering before taking any action and so if you would like to see how the 2025 Autumn Budget changes might affect you, your family and your business, why not book a meeting or call with us here and we can discuss your personal circumstances.
Beyond Accounting is committed to empowering businesses with clear, proactive financial guidance rooted in transparency and partnership. Our mission is to simplify the complex, giving clients confidence and clarity in their numbers so they can make smarter decisions and focus on what matters most. We envision a modern accounting experience where technology, insight, and personalised support come together to help every business thrive, adapt, and grow sustainably.
