Chancellor Rachel Reeves delivered the Autumn Budget 2025 amid controversy after an early OBR leak. From capital allowances to NI threshold freezes, Nottingham chartered accountants Clayton & Brewill highlights the measures most likely to affect businesses, as well as other important changes worth noting.
Business measures
1. Business rates and commercial property
The government announced in the Autumn Budget 2025 that it will permanently lower rates for around 750,000 retail, hospitality and leisure properties, funded by higher rates on high-value commercial properties (targeting properties valued at £500,000 and above).
2. Tax on dividends
There will be a 2% increase to the basic and higher rates of tax on dividends from April 2026. This will raise them from 8.75% to 10.75% and 33.75% to 35.75%. The OBR also reported that from April 2027 there will be a 2% increase to the basic, higher and additional rates of savings income tax.
3. Capital allowances
The Autumn Budget 2025 confirms full expensing for main-rate plant and machinery. From 1 January 2026, a 40% first-year allowance will apply to main-rate assets that do not qualify for full expensing — relevant for assets for leasing and for non-corporate businesses. From April 2026, the main-rate writing-down allowance will fall from 18% to 14%. Enhanced investment schemes for SMEs and growth companies are also extended.
4. Payroll — frozen thresholds and salary-sacrifice cap
Personal tax and National Insurance thresholds will remain frozen until 2031, bringing more taxpayers into higher bands as wages rise. From April 2029, NIC relief on salary-sacrificed pension contributions will be capped so only the first £2,000 of salary-sacrificed contributions retains the exemption.
5. Property income tax for landlords
Property income tax rates will rise by 2% from April 2027 across basic, higher and additional rates, taking these to 22%, 42% and 47%, respectively.
6. Sector-specific tax changes
Gambling operators face a significant increase in remote gaming duty from 21% to 40% from April 2026, while bingo duty will be abolished. The Autumn Budget 2025 also revealed a new higher rate for online betting will also be introduced.
7. Customs and parcel rules
The de-minimis exemption for low-value imports (previously parcels under £135) will remain in place for now but will be reformed with implementation targeted by March 2029. The Budget signalled that customs treatment of low-value imports will change to ensure parity between online and high-street retailers.
Other measures in the Autumn Budget 2025
8. ISA reforms
The overall ISA annual allowance remains £20,000, but from 6 April 2027 the cash ISA limit for those under 65 will fall to £12,000 (the remainder may be used in stocks & shares ISAs). Over-65s retain the full cash allowance.
9. Fuel duty and motoring
Fuel duty is frozen until at least September 2026. The Autumn Budget 2025 also sets out EV-related excise measures including per-mile charges for electric vehicles. From April 2028, EV drivers will pay around 3p per mile, while plug-in hybrid drivers will pay around 1.5p per mile.
10. “Mansion” tax
A high-value council tax surcharge will apply to residential properties worth more than £2m, with tiered charges (£2,500 per year at the lower tier, rising to £7,500 on the properties worth over £5m).
Clayton & Brewill can help you interpret the changes announced in the Autumn Budget 2025 and implement the most tax-efficient responses. Please contact us on 0115 950 3044 or email office@claytonandbrewill.com.
