On 26 November 2025, Chancellor Rachel Reeves presented her second Budget to Parliament. After the tax-raising budget of 2024, everyone hoped by the government that widely applicable tax increases would not be required again in 2025. However, with economic pressures continuing to apply, tax increases have been announced. These will affect the vast majority of households and people in the UK.

• National Insurance (NI) and income tax thresholds were frozen for an extra three years beyond 2028. This will bring more people into higher rates of tax over time.
• Dividends income will see a 2 percentage point rise to the ordinary and upper tax rates from April 2026.
• Savings and property income tax rates will be increased by 2 percentage points from April 2027.
• From April 2027, the cash Individual Savings Accounts (ISA) savings limit will be capped at £12,000 a year for those aged under 65.
• A council tax surcharge is being introduced for properties worth more than £2 million.
• Any unused portion of the £1 million agricultural property relief and business property relief allowance will be transferable to spouses and civil partners from April
  2026.
• A new excise duty will become payable on electric cars at 3p a mile for electric cars and 1.5p a mile for hybrid cars.
• Further Budget announcements will be made on 13 January and 20 January 2026 in relation to taxes unique to Scotland and Wales respectively.

Please take a look at the following articles to find out what the Budget 2025 means for you:

I am a working person

I am a business owner

I am a property owner

I am a saver

The UK tax rules are wide-reaching and affect individuals and entities in different ways. The above are just some simple examples. As always, please do reach out if we can help in providing personalised advice to you.

With just a few months until we reach the 2026/27 tax year, we know that many of our clients and contacts will look at how the Budget 2025 will impact their affairs.

While there was much talk about growth, tackling inflation and cutting the cost of living, everyone has been asked to contribute. Freezing many income tax rates and thresholds for a further three years and increasing taxes on savings, dividends and property income will mean many end up paying more over the coming years. It may be necessary to re-examine your business and personal plans for 2026 and beyond to be as tax-efficient as possible.

Remember, we are here to support you to ensure your business and personal success. Please do get in touch if there is anything that you would like to discuss.