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Chancellor Rachel Reeves presented the Autumn Budget 2025 with a focus on easing cost of living pressures, reforming welfare support and strengthening public finances. Households will see targeted help from April 2026, while landlords, investors and company directors must prepare for higher taxes on dividends, savings and property income from 2026 and 2027.

This guide provides a clear summary of measures that matter the most, along with accurate figures taken from official Budget documents.

Table of Contents

1. Introduction: Key changes at a glance
2. Cost of living measures
3. Wages, pensions and benefits
4. Tax changes for individuals and investors
5. Property and council tax changes
6. Business measures and investment incentives
7. Implementation timeline
8. Who gains and who pays more
9. How Doshi Accountants can support you

1. Introduction: Key changes at a glance

This section highlights the most important Budget changes that affect households, workers, landlords, directors and investors.

The Budget delivers support for energy bills, pension up-rates, and a wage increase from April 2026. It also introduces higher taxes on dividend income, savings interest and rental profits. Long term freezes on Income Tax and National Insurance thresholds remain in place until April 2031.

Key points include:

• Average energy bill saving of about £150 from April 2026
• National Living Wage rise of 4.1%
• Two child benefit cap will be removed from April 2026
• Dividend and savings tax rises from 2026 -27
• New tiered property income tax from April 2027
• High value council tax surcharge from April 2028
• Thresholds for income tax and National Insurance frozen until April 2031

2. Cost of living measures

These measures focus on reducing pressure on household budgets through energy support, transport freezes and targeted benefits.

Energy bills

Most households in Great Britain will benefit from lower energy bills from April 2026. The government has restructured several schemes, producing an estimated saving of £150 a year.

Breakdown of projected savings

The Warm Home Discount of £150 remains available this winter to around 6 million lower income households. A new £1.5 billion Warm Homes Plan will sit alongside an existing £13.2 billion programme to improve energy efficiency.

Transport and utilities

• Rail fares in England frozen for one year from March 2026. Regular commuters may save more than £300.
• Fuel duty cut of 5pence continues until 31 August 2026 and is then phased out by March 2027.
• NHS prescription charges remain fixed at £9.90.
• The £3 bus fare cap is extended to March 2027 on 5,000 routes.

3. Wages, pensions and benefits

This section covers the key income changes affecting workers, pensioners and families.

National Living Wage and National Minimum Wage from April 2026:

Millions of workers will see pay increase next year. Employers should plan for higher payroll obligations and adjust budgets accordingly.
 

A full time worker aged 21 or over could earn about £900 more per year.

If you are unsure how a rate change could influence your payslip or payroll costs, our Payroll Services team can help you calculate the real impact.

State Pension

The State Pension will increase by 4.8 % from April 2026. The full new State Pension could rise by around £575 annually. More than 12 million pensioners will get benefit.

Benefits and welfare

The two child benefit cap will be removed from April 2026, which is expected to lift about 450,000 children out of poverty. Universal Credit standard allowances will increase by 6.2 %. Health related benefits for existing claimants remain frozen until 2029 to 2030.

4. Tax changes for individuals and investors

These changes affect dividend income, savings interest and thresholds for personal taxation.

• Income tax thresholds
  Income tax and National Insurance thresholds will remain frozen until April 2031. As wages rise, more people move into higher tax bands, which increases overall liabilities.
• Dividend and savings income tax rates
  Several tax rises begin from April 2026 and April 2027.
• Dividend and savings income changes
   

Personal saving allowances remain unchanged. ISA income continues to be tax free.
 

5. Property and council tax changes

This section covers the new tiered property income tax system and the surcharge for high value homes.

• Property income taxation from April 2027
  Rental income will move to a new multi-tier tax structure, with indicative rates of around 22 %, 42 % and 47 % depending on the income level. Precise thresholds will be confirmed nearer the time. 

  For property owners or investors, our Property Tax Services can help you review your structure, allowable expenses and long term tax planning.
   

• High value council tax surcharge
  From April 2028, properties in England valued above £2 million will face an annual charge.
   
• High value council tax surcharge
   

Fewer than 1 % of homes are expected to be affected. The measure is forecast to raise about £400 million annually by 2029 to 2030.

6. Business measures and investment incentives

Support for high growth companies, changes to EMI option schemes and investment incentives through VCT and EIS programmes.

• EMI share options: From April 2026, companies with up to 500 employees and gross assets of up to £120 million can offer up to £6 million in Enterprise Management Incentive options. The maximum exercise period increases to 15 years.
• Venture capital incentives: Venture Capital Trust and Enterprise Investment Scheme limits will rise substantially to £20 million. This is intended to encourage early stage investment and broaden funding for innovative businesses.
• Business rates: Retail, hospitality and leisure businesses will benefit from a permanent reduction in business rate multipliers from April 2026.

Our business accountants can help companies assess the impact of National Insurance changes, business rates and share option schemes.

If your company needs help preparing or filing its Corporation Tax Return under the new rules, our specialists can guide you through the process and keep you compliant.

7. Implementation timeline

This timeline highlights key dates for employers, landlords, investors and households.
 

8. Who gains and who pays more

Independent analysis from the OBR shows the distributional impact of the Budget across income levels.
 

• Bottom 10 % of households gain about 8.4 % in net income.
• Middle income households are broadly neutral.
• Top 10 % see an estimated fall of 8.3 % due to tax rises on assets.
• Removal of the two child benefit cap is expected to lift around 450,000 children out of poverty.

This confirms that the Budget has a progressive overall effect.
 

9. How Doshi Accountants can support you

Doshi Accountants can help you understand the impact on your finances and prepare for each step of the transition.

You can speak to us for support with:

• Payroll Services. We can calculate wage implications and help you remain compliant.
• Property Tax Services. We can minimise liability under the new property income rules.
• Investment and Dividend Tax Planning . Strategies for higher dividend and savings rates.
• Business Tax Planning. Guidance on EMI schemes, business rates and corporate tax changes.
• Inheritance Tax Advisory. Support for estate planning before new charges take effect.
• Accounting Services. Full financial planning and compliance support.

For a confidential consultation or a full review of how the Autumn Budget 2025 affects your business or personal finances, Contact us to book an appointment.

Disclaimer:

This article is based on official HM Treasury Budget 2025 documents and public sources as of 26 November 2025. It is for general information only and does not constitute financial or tax advice. Please consult a qualified accountant or advisor before making financial decisions.