Autumn Budget Statement 2025

Chancellor Rachel Reeves has now delivered the Autumn Budget Statement for 2025, outlining a series of updates that could influence your financial planning in the months and years ahead.  

To help you understand the implications, our team has created a detailed guide of the announcements and what they could mean for your future life goals. 

Some Key Updates from the Autumn Budget:  

• Income Tax and National Insurance: Income tax and National Insurance thresholds will remain frozen for an additional three years beyond 2028. Over time, this ‘fiscal drag’ effect is likely to pull more people into higher tax bands.
• Dividend Tax: From April 2026, dividend tax rates will rise by two percentage points, increasing both the basic and higher rates, something that may impact company directors, investors and those drawing income from portfolios.
• ISA Allowances: From April 2027, under-65s will be able to contribute £12,000 a year into Cash ISAs, with the remaining £8,000 of the £20,000 allowance reserved for investment ISAs. This may influence how individuals structure their tax-efficient savings.
• Property and High-Value Homes: A new High Value Council Tax Surcharge (Mansion Tax) will apply to homes valued above £2 million from April 2028. Annual charges will range from £2,500 to £7,500 depending on the property’s valuation.
• Electric Vehicles: From 2028, electric vehicles will face a new per-mile excise duty, set at 3p per mile for EVs. This may be relevant for households or businesses with multiple electric vehicles or high annual mileage.

Your Next Step 

The impact of these measures will naturally vary from person to person, depending on factors such as income, wealth, business interests, and longer-term aspirations. 

To explore the Budget in context, you can download your free copy of our Autumn Budget Statement 2025 Guide. It includes the remaining updates, offering a clear, accessible overview of how this year’s changes may shape your financial journey. 

If any of the changes leave you unsure about the best way forward, whether in relation to tax, investments, property or future planning, our advisers are here to help you understand what this year’s Budget may mean for you, your family, or your business. 

Bowmore Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.