The Autumn Budget 2025 was delivered on 26 November 2025 by Chancellor Rachel Reeves, with some key points to note, listed below.
- The individual savings account (ISA) subscription limit remains £20,000. But from April 2027, savers under age 65 must invest at least £8,000 of the annual ISA allowance into qualifying investments such as shares and authorised funds, rather than in cash.
- From 6 April 2029, the amount that an employee may contribute to a pension through salary sacrifice without paying national insurance contributions (NICs) will be capped at £2,000 a year.
- VCT income tax relief will decrease to 20% from 2026/2027.
- A new usage-based Electric Vehicle Excise Duty (eVED) will be introduced from April 2028, establishing a charge per mile for electric cars. Average EV drivers are expected to pay around £240 a year initially and plug-in hybrid cars will attract a reduced rate.
- Fuel duty will increase in stages by 1p per litre on 1 September 2026, a further 2p on 1 December 2026 and a final 2p on 1 March 2027.
As ever, the Budget publications contained a wide range of detailed proposals with much to digest and not all changes apply if you are a resident in Scotland. Below are the details regarding income and dividend tax; however, the Scottish Budget will be released on the 13th January 2026 and will confirm bandings and rates for Scottish residents:
- The personal allowance and the existing income-tax thresholds remain fixed at their current cash values for a further three years to 2030/31.
- Tax rates on savings income, dividends and property income will increase by 2 percentage points from 2026/27, except for the additional rate on dividends, which will stay at 39.35%.
As ever, the Budget publications contained a wide range of detailed proposals and much to digest.
Our Budget summary highlights the key aspects likely to affect you and can be accessed here. This content is based on information at the time of publication and should not be taken as advice.
If you have any questions about how these changes might affect your financial plans, please get in touch with our team.
