The Autumn Budget 2025
The Autumn Budget 2025 delivered a financial roadmap for the UK, with measures that will shape the economy not just from the next tax year, but all the way through to 2030/31.
For businesses and individuals, the challenge is not just in the headline changes, but also in their timing. With key tax measures, from adjustments to Income Tax thresholds and Dividend Tax rates to new rules on Capital Allowances and corporate reliefs, rolling out over several years, knowing exactly when each measure takes effect is essential for proactive tax planning.
To make this easier, we’ve set out the key changes below in order of when they start. This gives you a clear overview of what’s coming and when you’ll need to be ready. For full details on each announcement, download our budget summary guide.
Financial peace of mind relies on looking ahead. Now is the time to start preparing for the changes coming... even if they feel like a long way off.
Employee Ownership Trusts
26 November 2025
CGT relief on sales to Employee Ownership Trusts (EOTs) reduced from 100% to 50%.
Stamp Duty Reserve Tax Exemption
27 November 2025
Stamp Duty Reserve Tax Exemption introduced for transfers of shares in newly listed UK companies for three years.
New First-Year Allowance
1 January 2026
Introduction of a new 40% First-Year Allowance for certain plant & machinery assets.
Alcohol Duty
1 February 2026
Rates will increase with RPI.
Penalties, Wages, Business Rate
1 April 2026
MTD Penalties
1 April 2026
New powers will be introduced to ensure that the MTD and new penalty reform legislation works
Making Tax Digital for Income Tax (£50,000 Threshold)
6 April 2026
MTD for ITSA becomes mandatory for all sole traders and landlords with gross annual income of £50,000 or more from self-employment and/or property.
Dividend Tax Increase
6 April 2026
Tax rates on dividends will increase by two percentage points for basic and higher rate taxpayers from the 2026/27 tax year.
Inheritance Tax Reliefs
6 April 2026
The 100% relief you can claim under Agricultural Property Relief (APR) and Business Property Relief (BPR) will be limited to a combined maximum of £1 million across both reliefs. However, unused allowance will become transferable between spouses and civil partners on death.
Other Key Changes Starting in the New Tax Year
6 April 2026
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Income Tax relief on VCTs will decrease to 20%.
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Lifetime investment limits for companies will increase to £24 million and £40 million for KICs.
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Gross assets test will increase to £30 million before share issues or £35 million after.
The Two-Year Outlook: Planning for Upcoming Changes
from April 2027
The government is removing the requirement for companies to notify HMRC within 92 days of granting Enterprise Management Incentives options.
Savings and Property Income Tax Increase
April 2027
Tax rates on savings income and property income will rise by two percentage points for basic, higher, and additional rate taxpayers from the 2027/28 tax year.
Cash ISA Limit Reduction
April 2027
The maximum annual subscription to Cash ISAs will be reduced to £12,000 from 2027/28 for individuals under age 65, though the overall ISA limit will remain at £20,000.
Making Tax Digital for Income Tax (£30,000 Threshold)
6 April 2027
MTD for ITSA becomes mandatory for sole traders and landlords with turnover exceeding £30,000.
High Value Council Tax Surcharge
April 2028
A new 'mansion tax' will be introduced from April 2028 on properties valued at over £2 million.
Electric Vehicle Charge
April 2028
A pay-per-mile charge will be introduced for electric vehicles (including hybrids) from April 2028.
Low-Value Import VAT Relief
March 2029
Import VAT relief for consignments under £135 to end.
Pension Salary Sacrifice Cap
April 2029
Salary sacrifice used to fund pension contributions will be capped for NICs relief at the first £2,000 a year, effective from the 2029/30 tax year.
VAT Digital Invoicing
April 2029
Mandatory electronic format for all VAT invoices. Implementation roadmap to follow at Budget 2026.
Benefit-in-Kind for Company Car Schemes
April 2030
The Benefit-in-Kind rules for Employee Car Ownership Schemes are being reviewed and planned for change. Businesses should prepare for changes that may impact their payroll and tax liabilities.
Tax Thresholds Frozen
April 2031
The income tax personal allowance and thresholds, along with the employee and self-employed National Insurance Contribution (NICs) thresholds, will be frozen for a further three years, lasting until 6 April 2031.
IHT Threshold Freeze
April 2031
The Inheritance Tax nil rate band and Residential Nil Rate Band (RNRB) will be frozen for another year, until 6 April 2031.
Don't Leave Your Tax to Chance
The Autumn Budget 2025 will impact your tax position for the next five years. Let's make sure you're proactive, compliant, and ready to grow! Reach out today to review your long-term tax strategy and plan ahead with confidence.
