Measures that will impact decisions in the years ahead

In the Autumn Budget 2025 Chancellor Rachel Reeves set out a wide range of measures that will influence personal finances, investment decisions and business planning in the years ahead.

With tax changes affecting savings, property, dividends and everyday business costs, many individuals and organisations will be assessing what the announcements mean for their circumstances.

MHA has put forward 12 key points that break down the most important elements of the Budget to help quickly make sense of the changes. Whether they’re focused on managing personal tax positions or planning the next steps for a business, these insights highlight the measures most likely to impact individuals and businesses.

• Income tax: income tax thresholds will remain frozen at current levels for a further three years, up to April 2031. This policy means as individual’s pay increases, more people will be drawn into higher income tax brackets.
• Pension salary sacrifice: it has been confirmed that, from April 2029, only the first £2,000 of annual pension contributions made via salary sacrifice will remain exempt from National Insurance (NI). Above this threshold, NI will be charged.
• Income tax on dividends, savings and property: the ordinary and upper dividend tax rate will be increased by 2% effective from April 2026. Th e savings tax rate will also be increased by 2% across all bands from April 2027. In addition, new rates of tax will be introduced for property with effect from April 2027, these will be set at 2% above the non-savings rate in each band.
• Cash ISA reforms: from April 6, 2027, the cash ISA limit for anyone under 65 will fall from £20,000 to £12,000, as the Government aims to encourage more people to invest. Importantly, your overall ISA allowance remains £20,000 and shares ISA each tax year. Over 65s will continue to retain the existing allowance, being able to save up to £20,000 in a cash ISA each year.
• Changes to capital allowances: Changes to capital allowances sees a reduction in the Writing Down Allowance from 18% to 14% for companies, and the addition of a new 40% First Year Allowance, specifically benefiting businesses which are heavily invested in new assets used for leasing.
• Gambling tax : a new gambling tax from April 1, 2026 will see the Remote Gaming Duty almost double from 21% to 40%.
• Property taxation – significant changes to property taxation sees the introduction of a High Value Council Tax Surcharge (HVCTS or mansion tax) in England from April 2028. Homes worth over £2m will incur an annual charge of £2,500; homes worth over £5m will incur an annual charge of £7,500.