The Autumn Statement has arrived, with speculation finally at an end, we can confirm what was announced today.
TAX CHANGES
- National Insurance (NI) and Income Tax threshold freeze extended by another three years from April 2028 to April 2031.
- Increase of 2% on basic rate from 8.75% to 10.75% and higher rate from 33.75% to 35.75% on dividends from April 2026. No change to additional dividend rate, at 39.35%.
- Increase of 2% on Income Tax rates for property income and savings income – 22% basic rate, 42% higher rate and 47% additional rate, from April 2027.
- Mansion tax of £2,500 on properties over £2 million and £7,500 on properties over £5 million, from April 2028.
ISA CHANGES
- Cash ISA limit reduced from £20,000 to £12,000 from April 2027, with the remaining £8,000 available if you invest in a Stocks and Shares ISA.
- Over 65s exempt from this change.
PENSION REFORMS
- Salary-sacrifice pension contributions above £2,000 will be subject to National Insurance from April 2029.
- Basic and New State Pension rates will increase by 4.8% from April 2026, £440 per year for Basic State Pension and £575 per year for New State Pension
TRAINING AND EDUCATION
- Fully funded training for under-25s apprenticeships for small and medium businesses.
- Student loan repayment threshold frozen for three years.
- £5 million for secondary school libraries and £18 million to improve playgrounds in England.
PROPERTY, BUSINESS & VEHICLES
- Capital Gains Tax (CGT) relief on business sales made to employee ownership trusts will be reduced from 100% to 50%.
- Mileage-based charge for electric vehicles (EV) to be introduced from 2028.
- “Luxury car tax” threshold raised to £50,000 for EVs in April 2026.
INHERITANCE TAX
- Nil Rate Band (NRB) and the Residence Nil Rate Band (RNRB) has been further extended to 2031.
- Infected Blood Scheme compensation will be exempt from IHT.
- Family farm tax changes will now include transfers of £1 million APR/BPR to spouses, meaning that the surviving spouse can use both allowances - £1 million from their partner and their own £1 million allowance when passing down to their children.
OTHER
- Two-child benefit cap scrapped from April 2026.
- Fuel duty freeze to be phased out from September 2026.
- Minimum wage increased by 4.1% from April 2026, with 6-8.5% increases for younger workers.
SEEK PROFESSIONAL HELP
If you would like to discuss anything from today’s announcement, then please get in touch with us.
