Key updates! The budget announcement

Delivered by Chancellor Rachel Reeves on 26^th November, the 2025 Autumn Budget brings a mix of new changes.

We’ve gone through the details, and here are some changes that you’ll want to keep a close eye on.

Taxes & Pensions

• Income tax thresholds: These will be frozen for an additional three years from 2028.

• Salary-sacrifice pensions: National insurance charged on contributions over £2,000 from 2029.

• State pension: Annual rise (£440 basic / £575 new).

• Cash ISA allowance: Cut to £12,000 (over-65s keep £20,000).

• Inheritance tax: Full relief now transferable between spouses.

• Ride-hailing tax: Uber and Bolt journeys taxed.

Property & Housing

• Mansion tax: A new charge will apply from 2028, set at £2,500 for homes valued over £2 million, rising to £7,500 for homes valued over £5 million.

• Energy bills: Average bills cut by £150 by scrapping ECO levy.

• Rail fares: Frozen for the first time in 30 years.

Landlords & Property Investors

• Dividend, property, and savings taxes: Each increase by 2 percentage points.

• Capital gains tax: The capital gains tax (CGT) relief for disposals of a business to an Employee Ownership Trust (EOT) from 100% to 50%. This means that an owner selling their company to an EOT will now pay capital gains tax on 50% of the gain, whereas previously the entire gain was exempt.

Wages & Business

• Minimum wage increases:

  • 21+: £12.71/hr

  • 18–20: £10.85/hr

  • 16–17 & apprentices: £8/hr

• Business rates: Cut for retail/hospitality/leisure and increased for large high-value premises.

• Apprenticeships: Under-25 training free in small businesses.

• Youth Guarantee: £820m for college/apprenticeship/job support paid work after 18 months.

• Stamp duty holiday: For companies newly listing on the London Stock Exchange.

Other Budget Highlights

• Two-child benefit cap: Scrapped from 2026.

• Student loan threshold: Frozen for three years.

• Regional mayors: £13bn flexible investment funding.

• OBR forecast: Lower growth; inflation 3.5% this year, 2.5% next £22bn fiscal headroom by 2030.

• Office for Budget Responsibility (OBR) forecast: The UK economy is expected to grow more slowly than previously thought.

• Inflation: Expected to be 3.5% this year and 2.5% next year.

• NHS investment: £300m for tech + 250 new community health centres and prescriptions frozen at £9.90.

• Government finances: The government is expected to have £22 billion of spare budget room by 2030.

What This Means for You

With adjustments to stamp duty, wages, taxation, and the cost of living, this budget may have a meaningful impact on:

• Borrowing power

• Affordability

• The property market

• Long-term financial planning

If you’re considering buying, moving, remortgaging, or reviewing your protection plans, our team can help you understand your options with clarity and confidence.

Just fill out our form!

Source- https://news.sky.com/story/budget-2025-the-key-points-at-a-glance-13475533

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