Autumn Budget 2025: What the Changes Mean for Your Finances

The Autumn Budget 2025 introduced a wide range of reforms, affecting both tax and non-tax policy. Business owners, retirees, high net worth individuals, and charity trustees should consider these developments carefully, as they may influence income, investments, pensions, business operations, and charitable planning.

This guide highlights the key measures and their potential impact, helping you plan for both immediate and long-term financial goals.

 

Tax changes

 

Wealth and Property Reliefs

From 6 April 2026, reforms to wealth and property-related tax reliefs will take effect. Business Relief (BP) and Agricultural Relief (AR) rules will be updated, including tighter rules for trusts and the abolition of certain loopholes.

• The £1 million allowance for 100% APR/BPR relief will become transferable between spouses or civil partners.
• Those holding  property in trusts should review these changes carefully, as exit charges and reliefs may now apply differently.

These reforms are designed to simplify and tighten reliefs, potentially affecting inheritance planning and succession strategies.

 

Carried Interest

The tax treatment of carried interest will shift into the income tax framework. Business owners and partners in investment structures should review how this affects expected returns, and planning for partnership profits.

 

Dividend Income

From 6 April 2026, dividend income will be taxed two percentage points higher for both basic and higher-rate taxpayers. The dividend tax credits enjoyed by non UK residents on UK shares will also be abolished. Retirees and high net worth investors with significant dividend income should review their portfolios to understand the impact on their income and tax planning.

 

Savings and ISAs

From 6 April 2027, several changes will affect tax-free savings:

• Cash ISA allowances for individuals under 65 will be reduced from £20,000 to £12,000 per year, though the overall ISA allowance remains £20,000. The remainder can be used in Stocks & Shares ISAs.
• Individuals aged 65 or over will retain the full £20,000 Cash ISA allowance.
• All bands of savings income will be taxed 2 percentage points higher.
• New standalone tax rates for property income will apply: basic rate 22%, higher rate 42%, and additional rate 47%.
• The freeze on income-tax thresholds will extend through to April 2031.

These changes could affect retirement planning, rental property income, and long-term savings strategies. Trustees managing charitable funds with interest-bearing investments may also need to consider the impact.

 

Lifetime ISA Reform

From 6 April 2026 onwards, the Government plans to consult on replacing the existing Lifetime ISA with a simpler product aimed at first-time buyers. Other ISA allowances, including Junior ISAs and Child Trust Funds, will remain unchanged.

 

High-Value Property Surcharge

From April 2028, a new annual surcharge on high-value residential properties will be introduced:

• Properties valued at £2 million or more will face a minimum annual charge of £2,500.
• The charge rises to £7,500 for homes worth £5 million or more.

High net worth individuals with multiple residential properties should consider the implications for estate and wealth planning.

 

Pension Contributions via Salary Sacrifice

From April 2029, only the first £2,000 of pension contributions made by employees through salary sacrifice will remain exempt from National Insurance contributions. Contributions above this threshold will attract NICs for both employer and employee. Trustees and business owners offering salary-sacrifice schemes should review these plans.

 

Non-tax changes

 

Energy and Household Costs

From April 2026, adjustments to the Renewable Obligation and Energy Company Obligation are expected to reduce average household energy bills by around £150 per year. For those managing multiple properties, energy-intensive businesses, or charitable facilities, these measures provide modest savings and help with medium-term budgeting.

 

Pensions and Wages

The State Pension will rise by 4.8 per cent from April 2026 under the triple lock. This is relevant to retirees’  cash flow planning, as well as high net worth individuals, who factor state pension income into their long-term projections.

The National Minimum and Living Wage will also increase across all eligible age groups. Business owners should assess the impact on payroll costs and staffing budgets, particularly for small and medium enterprises.

 

Welfare and Social Policy

The two-child limit on benefits will be removed from April 2026. While primarily affecting families, this may indirectly influence household spending and charitable giving.

From 2026–27, disability and sickness benefits will be reviewed to improve efficiency and reduce long-term claims. Charities or businesses providing employee support may need to adjust planning in line with these reforms.

Public spending will increase to support social programmes and regional development. This may open opportunities for businesses and trustees to engage with community initiatives or access funding for charitable or social projects.

 

Transport and Fuel

Rail fares in England will be frozen for one year from Spring 2026, and the temporary 5p fuel duty cut will be extended until September  2026. For business owners reliant on transport logistics or commuting staff, these measures provide modest operational savings and predictability in transport costs.

 

Cost of Living Support

The budget includes a package to support low-income households through welfare reforms, energy relief, wage increases, and pension uprating. High net worth individuals and retirees should consider how changes to household and state support may affect family planning, charitable giving, and long-term financial strategies.

 

Planning Considerations

Both tax and non-tax reforms can influence disposable income, retirement cash flow, business expenses, and charitable fund management.

• Business owners should review payroll, succession planning, employee benefits, and property holdings.
• Retirees may wish to revisit income projections, savings, and investment portfolios.
• High net worth individuals should consider estate planning, high-value property surcharges, and tax-efficient investments.
• Charity trustees should review operational budgets, fund management, and engagement with public programmes..

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Get in touch

At Rosebridge, we provide tailored advice to help you navigate the full range of Autumn Budget 2025 changes. Our team can support business owners, retirees, high net worth clients, and trustees in planning for both immediate and long-term financial goals. Get in touch today.

Ramsbottom office: Email enquiries@rosebridgeltd.com or call 01204 300010
Chester office: Email enquirieschester@rosebridgeltd.com or call 01244 569141
Leeds office: Email enquiriesleeds@rosebridgeltd.com or call 0113 243 7100

 

Please note

The information contained within this article is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. This is for information only and does not constitute advice. The Financial Conduct Authority does not regulate estate planning, cash flow planning or tax advice. The value of your investments can go down as well as up, so you could get back less than you invested.