Autumn Budget 2025 for individuals

In this article we look at the key tax changes for individuals announced by Chancellor Rachel Reeves in the 2025 Autumn Budget.

The biggest revenue-raising measure was the decision to freeze income tax and National Insurance contribution (NIC) thresholds until April 2031. This three-year extension of the freeze is expected to raise billions over time as inflation pushes more income into higher bands, while allowing the government to maintain its pledge not to increase headline rates of tax. From 6 April 2029, salary-sacrificed pension contributions above an annual £2,000 threshold will also be subject to employer and employee National Insurance contributions, limiting one of the ways individuals could potentially offset the impact of frozen thresholds. Savers and investors face further pressure with increases in the rates of income tax on dividends from April 2026 and on savings and property from April 2027.

There was plenty of speculation ahead of the Budget on potential tax changes for individuals, but not all of it came through. Reforms to inheritance tax (IHT) on lifetime gifting, changes to the capital gains tax (CGT) base cost uplift on death, and further changes to capital gains tax rates or reliefs such as business asset disposal relief were not included. However, one widely rumoured measure did appear: the so-called ‘mansion tax’, introduced from April 2028 as a council tax surcharge for homes in England worth more than £2 million.

You can read the detail behind each of the announcements below: