From 26 November 2025
Capital Gains Tax relief on disposals to Employee Ownership Trusts (EOT’s) will be halved with immediate effect. Historically business owners selling their business to an EOT benefited from 100% relief from capital gains tax on the disposal. The relief will be restricted to 50% from 26 November 2025.
Income Tax and National Insurance thresholds will be frozen for an additional 3 years from April 2028 to April 2031.
Inheritance Tax thresholds will also be maintained at the current level until April 2031.
Minimum wage for 21 and over increased from £12.21 to £12.71.
From 6 April 2026
The tax rates on dividends will increase by 2%. The basic rate and higher rate will each increase by 2% to 10.75% and 35.75% respectively but the additional rate will remain at 39.35%.
The £1m limit on 100% Business Property Relief and Agricultural Property Relief will be transferrable between spouses and civil partners.
The EMI and EIS investment and asset limits will be increased to expand the number of companies qualifying for relief. The income tax relief on VCT investments will, however, drop from 30% to 20%.
The main rate of writing down allowance on main pool plant and machinery will reduce from 18% to 14%.
A new First Year Allowance of 40% for main rate expenditure will be introduced.
From 6 April 2027
The basic rate, higher rate and additional rate for savings income will all increase by 2%. Tax rates on savings income will therefore be 22%, 42% and 47%.
Property income will have its own income tax rates. The property basic rate will be 22%, the property higher rate will be 42% and the property additional rate will be 47%. Finance cost relief will be provided at the separate property basic rate of 22%.
The £20,000 ISA annual limit is kept but, for those under 65, a minimum of £8,000 of the allowance will need to be invested in a stocks and shares ISA. The maximum investment in a cash ISA will, therefore, be £12,000.
From April 2028
A new High Value Council Tax Surcharge (HVCTS) will be introduced. HVCTS will be levied on properties worth £2million or more from April 2028. The charge will start at £2,500 per year, rising to £7,500 per year for properties valued above £5 million and will be levied on property owners rather than occupiers.
From April 2029
Salary sacrifice pension contributions above an annual £2,000 threshold will no longer be exempt from National Insurance. Contributions above the threshold will suffer both employee and employer National Insurance contributions.
