HERE IS A SUMMARY OF THE BUDGET NOVEMBER 2025
The least said the better………………..
1. As widely leaked before the Budget, income tax thresholds are to remain frozen until 2031
Increases in income tax for
– landlords – an increase in tax rates on property income by two percentage points, from April 2027
– dividends – an increase on the basic and higher rate, but not the additional rate, by two percentage points, from April 2026
– savers – an increase in tax rates on savings income by two percentage points, from April 2027
1. National minimum wage to rise by 4.1% from April 2026
2. A “mansion tax” will be introduced as a council tax surcharge on over £2m houses coming into effect in 2028. There will be four price bands with the surcharge rising from £2,500 for a property valued in the £2m to £2.5m band, to £7,500 for a property valued in the highest band of £5m or more
3. Capital allowances: a reduction to the writing down allowance (WDA) main rate from 18 to 14 per cent from April 2026, alongside a new 40 per cent first-year allowance from January 2026, on top of the existing £1m Annual Investment Allowance of 100%
4. Capital Gains Tax relief on the disposal of Employee Ownership Trusts has been reduced from 100% to 50%
5. Extension to the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) schemes. This will provide additional scope for income tax deductions for investors.
6. National Insurance will be levied on pension salary sacrifice over £2,000 from 2029
7. Lower tax rates for retail, hospitality and leisure properties – while large warehouses, particularly those used by online retailers, are facing generally higher rates or will see them increase significantly from April 2026.
8. ISA reform – £20k allowance but £8k needs to be in stocks and shares ISAs – over 65s keep the full £20k allowance
9. Car tax for electric and plug-in hybrids – tax to be paid per mile
10. Two-child benefit cap scrapped
11. The cost of apprenticeships for under-25-year-olds will be completely free for SMEs, meaning more small businesses can invest in future talent without the burden of part-funding the apprenticeship
12. Customs duty on packages of any size and value

We are always available to discuss any concerns you have and help plan for the future – 01142630600