- Income tax, NICs and IHT thresholds remain frozen to 2031, increasing the long-term tax burden on households
- Cash ISA limits fall to £12,000 for under 65s but overall allowance remain the same
- National Living Wage and State Pension increase, with benefits uprated and protections added for older pension schemes
- The Chancellor confirmed there are to be no changes to the basic, higher or additional rates of Income Tax, employee National Insurance contributions (NICs) or VAT
- The government is maintaining the Income Tax Personal Allowance at £12,570 and higher rate threshold at £50,270, for an additional three years to April 2031. National Insurance thresholds are also frozen until 2031
- The starting rate of Income Tax for savings will be retained at £5,000 for 2026/27 and will stay at this level until 5 April 2031. The tax rate on savings income will increase by two percentage points across all bands from April 2027 but current £1,000/£500 Personal Savings Allowances continue
- Separate rates of Income Tax will apply for property income. From April 2027, the property basic rate will be 22%, the property higher rate will be 42% and the property additional rate will be 47%
- Inheritance Tax thresholds (IHT) – The IHT nil-rate bands are already set at current levels until April 2030 and will stay fixed at these levels for a further year until April 2031. The forthcoming combined allowance for the 100% rate of agricultural property relief and business property relief will also be fixed at £1m for a further year until 5 April 2031. This will be legislated for in Finance Bill 2025/26 and take effect from 6 April 2030
- The ordinary and upper rates of tax on dividend income will increase by two percentage points from April 2026. There is no change to the dividend additional rate or the £500 annual (non-ISA) Dividend Allowance
- A High Value Council Tax Surcharge on owners of residential property in England worth £2m or more will start in 2028/29, with local authorities collecting revenue on behalf of central government. The charge will start at £2,500 a year and rise to £7,500 for properties valued above £5m
- From 6 April 2027 the annual Individual Savings Account (ISA) cash limit will be reduced from £20,000 to £12,000. Annual subscription limits will remain at £20,000 for ISAs until 2031, meaning you can invest the full amount in a Stocks & Shares ISA, or you can invest £12,000 in a Cash ISA, plus £8,000 in a Stocks & Shares ISA. Savers over the age of 65 will be able to save up to £20,000 in a cash ISA each year
- Annual subscription limits remain at £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2031
- To reform the Lifetime ISA, the government will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA
- The Help to Save scheme is to be made permanent
- The Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) investment limits are increasing to £10m and £20m for Knowledge Intensive Companies (KICs) and the lifetime company investment limit is increasing to £24m and £40m for KICs. The VCT Income Tax relief will decrease to 20%. These changes will be legislated in Finance Bill 2025/26
- As recently announced, the government will increase the National Living Wage by 4.1% for individuals to £12.71 an hour. The National Minimum Wage for 18 to 20-year-olds will also increase by 8.5% to £10.85 per hour and for 16 to 17-year-olds and apprentices by 6.0% to £8.00 per hour
- Working age benefits will be uprated in line with the September CPI inflation of 3.8% from April 2026
- As previously announced, the government has committed to maintain the State Pension Triple Lock for the duration of this Parliament, meaning that the basic and new State Pensions will increase by 4.8% in April 2026, in line with earnings growth. This means £241.30 a week for the full, new flat-rate State Pension (for those who reached State Pension age after April 2016) and £184.90 a week for the full, old basic State Pension (for those who reached State Pension age before April 2016)
- There are to be changes to salary sacrifice arrangements for pension contributions, with the amount that can be sacrificed without paying NICs capped at £2,000 per employee from 2029
- Members of the Pension Protection Fund (PPF) and Financial Assistance Scheme (FAS) will be protected against the impact of inflation by introducing CPI-linked increases, capped at 2.5% a year, on pre-1997 pension accruals where their original schemes provided this benefit, from January 2027.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding of the Budget taxation and HMRC rules and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
All details are believed to be correct at the time of writing (26 November 2025)
