LWA Blog: Autumn Budget summary and it’s key impacts on businesses, individuals and property owners

Chancellor Rachel Reeves delivered her second Budget on 26^th November 2025 against a backdrop of slow economic growth and continued inflationary pressure. As expected, the measures announced will result in higher tax bills for many households and businesses over the coming years, with a particular focus on income, property and savings. In this summary, our Tax Team at LWA highlights the main points that business owners and individuals should be aware of.

Income tax, savings and dividend

A major headline is the extension of the freeze on income tax and National Insurance thresholds until 2031, meaning more people will move into higher tax bands as earnings rise. Dividend tax rates will increase by 2% from April 2026, while savings and property income tax rates will rise by 2% from April 2027, impacting investors, landlords and company shareholders.

Measures affecting employers and business owners

For employers, minimum wage increases take effect from April 2026, alongside significant pension reform: salary sacrifice pension contributions above £2,000 per year will attract NICs from April 2029. Companies can benefit from a new 40% first-year capital allowance from January 2026, although this is countered by the reduction of the main writing-down allowance from 18% to 14% from April 2026. Corporation tax rates remain unchanged.

Property taxation and ISA changes

Property owners face further tax pressure. A new “mansion tax” will impose an additional annual council tax surcharge of at least £2,500 on homes valued over £2 million from April 2028. From April 2027, higher income tax rates will also apply to property income. Savers under 65 will see the cash ISA limit capped at £12,000 from April 2027, although the overall ISA limit remains at £20,000.

What the Budget means for your planning

For those affected by the High-Income Child Benefit Charge, HMRC has introduced a new online system to simplify reporting, while digitalisation measures continue to expand in other areas. With so many changes ahead, now is an ideal time to revisit your tax planning strategy.

LWA are here to help you

LWA’s Corporate and Personal Tax Teams are here to help you understand how the measures affect your business, family finances or property portfolio.

For bespoke advice, please contact us on 0161 905 1801 (South Manchester) or 01925 830 830 in Warrington, or you can email mail@lwaltd.com.

Visit lwaltd.com/resources/budget-statement-summary to download your free copy of our full 2025 Autumn Budget Summary PDF.