November 2025 – Budget Summary

For Business and Households

📅 Announcements

•        No headline changes to Income Tax (20%, 40%, 45%), NI, or VAT (20%)
•        Income tax thresholds frozen until April 2031:
         Personal allowance: £12,570
         Basic rate band: £12,571–£50,270
         Higher rate band: £50,271–£125,140
         Additional rate: £125,141+
•        New tourist tax on overnight stays
•        Environmental / behavioural charges introduced
•        Soft Drinks Levy extended to high‑sugar milk drinks
•        Fuel duty frozen until Sept 2026 (5p cut retained)
•        Remote gambling duty increased
•        Tobacco, vaping, alcohol duties rise with inflation
•        Customs duty applies on parcels of any value
•        Corporation tax capped at “lower rate 19%
          Higher rate 25%” for life of Parliament
•        Energy bills cut (~£150 via green levy removal)
•        Investment funding: NHS tech, education, infrastructure
•        Rail fares frozen (England)
•        State Pension triple lock upheld (uprating confirmed for 2026 at +4.8%)
•        Extra resources for fraud enforcement & devolved governments
•        Measures on Russian asset sanctions
•        National debt projected > £3 trillion

📅 April 2026

•        Writing‑down allowances: main pool 18% → 15% (special pool stays 6%)
          New 40% First Year Allowance (FYA) from Jan 2026
          Annual Investment Allowance (AIA) 100% tax relief on qualifying plant and
          machinery expenditure unchanged → up to a limit of £1 million per year
•        Dividend tax.
          Basic rate: increases from 8.75% → 10.75% (+2 percentage points)
          Higher rate: increases from 33.75% → 35.75% (+2 percentage points)
          Additional rate: increases from 39.35% → 40.35% (+1 percentage point,
          though often rounded as +2pp in summaries)•        CGT BADR: 14% → 18%
•        APR/BPR capped at £1m (Inheritance Tax)
•        Making Tax Digital for Income Tax begins
•        Student loan threshold frozen at £27,295 for 3 years
•        Two‑child benefit cap abolished (350k–450k children lifted from poverty)
•        Welfare benefits uprated with inflation
•        National Living Wage: £12.21 → £12.71 (+4.1%)
•        State Pension uprated: +4.8% (triple lock)
•        Prescription charges & rail fares frozen (England)

📅 April 2027

•        Property income taxed separately: Basic 22%, Higher 42%, Additional 47%
          (finance cost relief fixed at 22%)
•        Savings income tax +2pp across all bands
•        Pension pots included in IHT
•        Payrolling of Benefits‑in‑Kind introduced
•        ISA £20k limit retained, but £8k must be investment‑based (65+ exempt)
•        Reduced CGT relief for Employee Ownership Trust disposals
•        Simple Assessment removes small tax bills for pensioners

📅 April 2028

•        High‑value council tax surcharge begins:
          £2m–£2.5m → £2,500
          £5m+ → £7,500
         Uprated annually with CPI
•        EV mileage tax: 3p/mile (EVs), 1.5p/mile (hybrids), uprated with inflation
•        Business rates reduced permanently for hospitality (funded by online warehouses)
•        Help to Save scheme made permanent

📅 April 2029

•        Salary‑sacrifice pension contributions above £2,000 subject to NICs:
          Employer 15%
          Employee 8% (<£50,270)
          Extra 2p NIC above threshold