Autumn Budget update 2025

Rachel Reeves, the UK Chancellor, has announced a wide-range of property and tax reforms in today’s Autumn Budget, following months of conjecture as to what may happen.

F&F’s key takeaways are:

• Tax thresholds: Income tax and National Insurance thresholds are being frozen for another three years from 2028, continuing a pause implemented by the previous government, meaning that the thresholds do not rise with inflation.

• Tax-efficient savings: The Budget introduced salary-sacrifice pension contributions, which will be capped at £2,000 per year (from April 2029), meaning above that threshold, pension contributions will no longer avoid National Insurance. At the same time, tax rates on savings interest, dividends and property income will rise by two percentage points.

• Property taxation: Major changes for property owners and investors were confirmed and taking effect from April 2027, including a “high-value council tax surcharge” for properties worth more than £2m (an additional expense of £2,500 a year, rising to £7,500 for properties worth more than £5m), as well as the basic and higher rates of tax on property, dividend and savings income which will go up by two percentage points each (so to 22%, 42% and 47% for the basic and additional rates).

Although outside the scope of this short briefing note, significant changes have also been made to capital gains tax, corporation tax, and the tax treatment of gambling.

To read all the changes, visit Budget 2025 – Gov UK