Autumn Budget 2025

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Chancellor of the Exchequer Rachel Reeves set out tax-raising measures worth up to £26 billion in the Autumn Budget on 26 November 2025. The increases will be achieved through a range of measures, including extending the freeze on Income Tax thresholds for a further three years.

Some of the key highlights include:

  • In addition to maintaining Income Tax thresholds, taxes on property, dividend and saving income will be increased.
  • Employee and employer National Insurance contributions (NICs) on salary sacrifice pension contributions above £2,000 a year and introduced a tax on homes valued at £2 million
    or more.
  • The basic rate band remains at £37,700, with the higher rate threshold remaining at £50,270. The additional rate threshold remains at £125,140. The freeze of these thresholds will continue until April 2031.
  • Currently, the first £500 of dividends is chargeable to tax at 0% (the Dividend Allowance). This £500 is retained for 2026/27.
  • From 6 April 2026, there will be a 2% increase in the ordinary and upper rates of Income Tax applicable to dividends. The additional rate will remain unchanged at 39.35%.
  • For 2025/26 the rates of Class 1 employee NICs are 8% and 2%. The employer rate is 15%.
  • For 2025/26 the rates of Class 4 self-employed NICs are 6% and 2%. These rates remain the same for 2026/27.

For full details of the budget, please use the following link: Wettone_Matthews_(W-6167659)_BS_Nov25.pdf