On 26 November 2025, the UK Government published the Autumn Budget 2025, delivered by Rachel Reeves as Chancellor of the Exchequer.
This Budget arrives against a backdrop of economic pressure, rising borrowing costs, inflation, and a need to stabilise public finances, and seeks to balance tax rises with targeted support for households and investments in public services.
Below is a full breakdown of the key changes announced, and what they might mean for individuals, families, savers, and property-owners.
Key Tax, Benefit & Household-Cost Measures
Tax thresholds frozen for 3 additional years
The usual thresholds for income tax and similar tax bands will remain unchanged, effectively increasing tax for many over time.
New “mansion tax” on high-value homes
A new annual levy will apply to the wealthiest homes, starting at £2,500 for properties over £2 million, rising to £7,500 for homes over £5 million.
Removal of the two-child benefit cap
Families will no longer be limited to getting benefit support for just two children, the cap is being scrapped.
Cash ISA limit reduced (excluding over-65s)
The annual allowance for Cash ISAs will be cut, a move that has sparked concerns from financial industry groups about potential impacts on savings and mortgage lending.
Fuel duty freeze continues
Fuel duty remains unchanged, offering a modicum of relief for drivers at a time when living costs remain high.
Pension salary-sacrifice taxed over £2,000/month
Those making pension contributions via salary-sacrifice over £2,000 per month will now see those taxed, reducing the benefit of this previously popular retirement-saving route.
Support for Pensioners, Workers, Families & Households
State Pension increase of 4.8%
State pension payments will rise by 4.8%, boosting income for retirees.
Minimum wage increase from April
The minimum wage will go up, offering more income to low-paid workers from April.
£150 reduction to average energy bills
As part of cost-of-living support, households are set to receive a £150 cut on their average energy bills, from April next year.
Green Economy & Transport — EV, Cars, and Property
EV mileage tax from 2028
Electric vehicles (EVs) will be subject to a mileage-based tax starting from 2028, a notable shift as the UK pushes its net-zero agenda.
£200m for EV charging + £1.3bn for EV grants
To support green vehicles, the Budget allocates £200 million to expand EV charger infrastructure and offers £1.3 billion in grants for EV purchasers.
“Luxury car tax” only for cars over £50,000
Tax measures on cars will now focus on higher-end vehicles, only those over £50,000 will be subject to a “luxury car tax.”
Tax on Savings, Investments, Inheritance & Property
Higher taxes on savings, dividends & capital gains
Savers, investors, and property owners may face increased tax burdens, as taxes on savings, property gains, and dividends rise.
Inheritance tax relief fully transferable between spouses
The Budget allows full transferability of inheritance-tax relief between spouses, a change relevant for estate and succession planning.
Education, Skills & Regional Investment
Student loan repayment threshold frozen
The threshold for starting student loan repayments will not change, meaning many graduates may begin repaying sooner if incomes remain static.
Free apprenticeships for under-25s
Young people under 25 will have access to free apprenticeships, part of efforts to boost skills and employment opportunities.
Major funding for local governments, schools & public services
The Budget allocates:
- £13 billion to regional mayors, plus additional funding for Northern Ireland, Wales and Scotland
- £5 million for school libraries and £18 million for playground upgrades
- £4.9 billion extra for the NHS following local government cuts
Gambling & Online Gaming Sector Tax Uplift
Remote gaming duty increased to 40% and Online betting duty increased to 25%
The government raised duties on remote gaming and online betting, part of wider efforts to increase revenue from high-demand sectors.
What it all means: At a glance
- The Budget signals a renewed focus on raising revenue from wealth, property and investment, rather than typical working-income taxes.
- Many households may feel some relief, via energy-bill cuts, minimum wage rises, benefit changes and pension increases, but others may see increased costs, especially savers, property owners, and investors.
- For those involved in estate planning, property investment, or pensions, the changes to taxes and allowances could have long-term implications worth reviewing.
- The government also channels substantial funds toward public services, infrastructure, regional investment, and green initiatives, indicating an ambition to support long-term growth, despite short-term fiscal pressure.
How GLP Solicitors can help
With so many financial, tax and regulatory changes announced in the Autumn Budget 2025, individuals and businesses may find it challenging to understand how these updates affect their rights, obligations and long-term planning.
At GLP Solicitors, we provide clear, practical legal advice tailored to your circumstances. Whether you are navigating changes in property law, employment matters, commercial planning, or personal financial decisions impacted by tax and benefit reforms, our team is here to support you.
We offer comprehensive legal services across:
- Private client matters – including wills, probate, inheritance planning and personal disputes
- Property and housing – for homeowners, landlords, tenants and developers
- Business and commercial law – contracts, compliance, disputes and strategic advice
- Employment law – guidance for both employers and employees
- Litigation and dispute resolution
As the legal and economic landscape shifts, GLP Solicitors remains committed to helping you stay informed, compliant and protected. If you need personalised guidance on how the 2025 Budget impacts you or your organisation, our team is ready to assist.
Email our team: enquiries@glplaw.com
Call our office: 0800 111 6370