Thursday 27th November 2025
The ability to plan!
Although there was talk of further radical changes they did not materialise other than the High Value Council Tax Surcharge and overnight changes to the taxation of sale proceeds of a business to an Employee Ownership Trust (EOT).
Instead, the government opted for a gradual, stealthy approach (threshold freezes, rate increases on certain income types, surcharges and a few tweaks here and there), rather than a headline-grabbing, sweeping wealth tax overhaul – at least for now.
No increase to headline income-tax rates
Despite widespread speculation in the run-up to the Budget about potentially raising the basic or higher income-tax rates, the government did not touch those headline rates. Instead, it opted to freeze the thresholds at which the rates apply.
Pensions allowances and reliefs intact
No changes to pensions funding allowance or tax reliefs and tax-free cash remains intact but future changes to how national insurance is applied to pension contributions paid by means of salary sacrifice from 2029.
No changes to capital gains tax (other than (EOT’s)
Allowances still tiny and frozen but no changes to the main rates of tax.
Individual savings accounts still available
The total ISA annual subscription limit has been maintained at £20,000 but the amount can be contributed to a cash ISA falls to just £12,000 for under‑65s from April 2027.
No changes to inheritance tax or gifting rules
Despite widespread rumours the seven-year period remains after which prior gifts fall off the page for Inheritance tax and the widely rumoured restrictions to gifting didn’t happen either.
Gifting from surplus income can continue although annual allowances and thresholds are all still frozen so fiscal drag kicks in again as more estates will trip into IHT as a result of asset values increasing over time.
As before, there remains scope for legitimate planning to maximise available allowances and reliefs.
Sources and useful links:
Budget 2025
OBR report ( the one that was leaked)
Changes to tax on rent, interest and dividends
High Value Council Tax Surcharge – GOV.UK
Autumn Budget 2025: Martin Lewis analyses the key measures
Budget 2025 summary: Key points from Rachel Reeves’s speech – BBC News