--- title: Autumn Budget 2025 - what could this mean for you? description: The Autumn Budget 2025 has been announced. The team at Beacon Wealth Management explain how these updates may affect you. image: https://beaconwm.co.uk/hubfs/Budget%20announcement%202025%20email%20graphic%20-%20low-res.png --- [🔒 Personal Finance Portal](https://beaconwm.gb.pfp.net/) [![Beacon Wealth Management](https://beaconwm.co.uk/hs-fs/hubfs/brand-logos/bwm-logo_791x500.jpg?width=791&height=500&name=bwm-logo_791x500.jpg "Beacon Wealth Management")](https://143955714.hs-sites-eu1.com/) [![Beacon Wealth Management](https://beaconwm.co.uk/hs-fs/hubfs/brand-logos/bwm-logo_791x500.jpg?width=791&height=500&name=bwm-logo_791x500.jpg "Beacon Wealth Management")](https://143955714.hs-sites-eu1.com/) - What we offer - [Planning](https://beaconwm.co.uk/planning) - [Retirement & Pensions](https://beaconwm.co.uk/planning#pensions) - [Passing on Wealth](https://beaconwm.co.uk/planning#wealth) - [Health & Protection](https://beaconwm.co.uk/planning#protection) - [Long-Term Care](https://beaconwm.co.uk/planning#care) - [Divorce](https://beaconwm.co.uk/planning#divorce) - [Mortgages](https://beaconwm.co.uk/planning#mortgages) - [Investing](https://beaconwm.co.uk/investing) - [Why invest with us](https://beaconwm.co.uk/investing#why-invest) - [Our Portfolios](https://beaconwm.co.uk/investing#our-portfolios) - [Business](https://beaconwm.co.uk/business) - [Employee Benefits](https://beaconwm.co.uk/business#Employee-Benefits) - [Workplace Pension](https://beaconwm.co.uk/business#Workplace-Pension) - [Business Protection](https://beaconwm.co.uk/business#Business-Protection) - [Corporate Planning](https://beaconwm.co.uk/business#Corporate-Planning) - [Who we help](https://beaconwm.co.uk/who-we-help) - [How it works](https://beaconwm.co.uk/how-it-works) - [Who we are](https://beaconwm.co.uk/who-we-are) - [Insights & News](https://beaconwm.co.uk/insights-and-news) - [Contact us](https://beaconwm.co.uk/contact-us) - [01480 869466](callto:+441480869466) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # Autumn Budget 2025 - what could this mean for you? News 26 November 2025 | 3 minute read by Beacon Wealth Management ## **The Chancellor Rachel Reeves delivered the 2025 Budget today, outlining tax changes, investment commitments and reforms intended to “rebuild the economy” and support public services.** Below is a summary of the key announcements. We appreciate there has been a great deal of media speculation and noise around this announcement – should you want to speak to an Adviser about how this may impact your circumstances, please [contact us here](https://beaconwm.co.uk/contact-us). ## 1. Key Changes affecting Individuals **Income Tax Thresholds Frozen Until 2031** The Chancellor confirmed that personal income tax thresholds will remain frozen until April 2031. This extends the freeze by three additional years. **Pension Salary Sacrifice Changes (from 2029)** A significant announcement is the introduction of a £2,000 annual cap on salary-sacrificed pension contributions. Contributions above this level will attract **National Insurance**. Lower-income earners are largely unaffected, but higher earners and those making substantial contributions – for example, putting their bonuses into pensions – will see increased NI liabilities. These changes take effect **April 2029**. **State Pension Triple Lock maintained** HM Government confirmed that both the basic and new State Pension will rise in line with the triple lock. **Cash ISA tax-free allowance reduced** The Cash ISA tax-free allowance will be reduced to £12,000 for under 65s. The Full £20,000 allowance is still available, but £8,000 of it will be earmarked for investment e.g. stocks and shares. This will come into effect from April 2027. Over 65s, however, will retain a £20,000 cash allowance. **Venture Capital Trust income tax relief is lowered** The income tax relief for new VCT shares will decrease from the current 30% to 20%. This will not impact people who already have or will set up a VCT investment before the new rules come into force in April 2027. **Lifetime ISAs to be abolished** There are plans to consult on the future of Lifetime ISAs, with plans to scrap the product and replace it with a new ISA aimed at first time buyers. **Abolition of the Two-Child Benefit Cap** The Government will remove the two-child benefit limit from April 2026, reversing a policy that had been in place since April 2017. **Increases on Dividend, Savings and Property Taxes** HM Government is increasing income tax rates on dividends, savings interest and property income by 2%, affecting investors, savers and landlords. The stated aim is to reduce the gap between income from labour (which pays National Insurance) and income from assets (which does not). The way taxpayers report and pay tax on these income streams remains the same. These changes do not affect earnings from employment or self-employment – only non-earned income from assets. ## 2. Housing & Property Measures **New “Mansion Tax” for £2m+ properties** Homes valued at more than £2m will be subject to a surcharge from 2028. A £2.5k annual charge for £2m+ homes is planned, along with a higher annual charge of £7,500 for £5m+ properties. The surcharges will be uprated in line with inflation each year, to prevent more properties becoming subject to the charge due to inflation. ## 3. Business & Self-Employed Announcements **Corporate Tax Relief adjustments** Corporation tax headline rates remain unchanged, but: - The Writing Down Allowance (WDA) will reduce from 18% to 14% from April 2026 - From January 2026, a new 40% first-business allowance of 40% is available for main-rate assets. **Enterprise incentive reforms** Eligibility is being widened for: - Enterprise Management Incentive schemes; - Venture Capital Trust reliefs; - UK listings reforms. The Treasury also launched a **call for evidence** on how the tax system can better support founders. **Business Rates Changes** A new structure with **lower thresholds** for smaller high-street businesses was announced, funded by increased charges on large online retailers. **Free Apprenticeship Training for Under-25s** Funding will be available for training for Under-25 apprenticeships free for small and medium size enterprises. **Capital Gains Tax applies to Employee Ownership Trusts (EOTs)** CGT relief on disposals to EOTs will be reduced from 100% to 50%. ## 4. Transport, Motoring & Energy **Fuel Duty frozen to September 2026** Fuel duty remains frozen to September 2026. **New mileage tax for electric vehicles** From 2028, a mileage-based charge for EVs (3p per mile) and plug-in hybrids (1.5p per mile) will be introduced. **Funding for National EV charging rollout** Businesses installing EV charging points will receive 100% relief for the next decade. ## Conclusion This Budget delivers **significant tax increases** **of £26bn** largely by frozen thresholds, pension salary-sacrifice changes, and new property and investment tax measures. While the headline changes will affect many households, the impact will vary considerably depending on your income, assets and long-term financial plans. We will continue to monitor developments, but if you have any questions or concerns about your situation following the announcements, you can reach us on 01480 869 466 or email [info@beaconwealth.co.uk](mailto:info@beaconwealth.co.uk). *Future fees may apply. 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