Autumn Statement 26 November 2025

Main rate of Class 1 NICs remain unchanged at rate of 8%.

Class 4 NICs rate remain unchanged at 6%.

No further increase to Employers NICs rate from 15%.

Employers NIC secondary threshold remains at £5,000.

Employers NIC "Employment Allowance" remains at £10,500 from April 2025.

Employer NIC relief for veterans hiring veterans in their first civilian role will be extended to April 2028.

Personal Income Tax and National Insurance contributions thresholds, will now be fixed for a further 3 years beyond April 2028 to 2031.

National Living Wage to increase from £12.21 an hour for age 21 and over to £12.71 from 1 April 2026.

NMW rates to apply from April 2026:

• 18 to 20 year olds from £10.00 to £10.85 per hour
• 16 to 17 year olds from £7.55 to £8.00 per hour

Dividend Allowance to remain at £500 for the 2026/27 Tax Year.

Dividend Tax rate changes from 6 April 2026: the 8.75% ordinary rate will be increased by 2 percentage points to 10.75% and the upper rate will be increased by 2 percentage points to 35.75%. The additional rate will remain unchanged at 39.35%.

Property Rental taxes from April 2027 are increasing. The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%.

Savings income taxes from April 2027 are increasing. The savings basic rate will be increased by 2 percentage points to 22%, the savings higher rate will be increased by 2 percentage points to 42% and the savings additional rate will be increased by 2 percentage points to 47%.

Capital Gains Tax higher rate on residential property gains remains at 24% and 18% for the basic rate.

No change to Capital Gains Tax Annual Exempt Amount of £3,000.

No change to Corporation Tax rates:

• 19% for taxable profits below £50,000 (small profits rate)
• 25% for taxable profits above £250,000 (main rate) Marginal Relief available to be tapered between the small profits rate and the main rate.

100% Capital Allowance first year tax relief (in addition to current AIA allowances) for Limited Companies only, remains.

New 40% First Year Allowance available from 1st January 2026, incorporated and unincorporated businesses.

Reduction of the rate of Writing Down Allowances from 18% to 14% for unincorporated and incorporated businesses (1 April 2026 / 6 April 2026).

No change to the Individual's undrawn pension fund being subject to Inheritance Tax from 6 April 2027.

From April 2026 any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

ISA changes from April 2027: £20,000 full cash ISA limit still available for the over 65’s. Under 65’s cash ISA limit reduced to £12,000.

Van and Fuel benefit amounts increased in line with inflation from April 2026.

Introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, with effect from April 2028. Drivers will pay for their mileage on a per-mile basis alongside their existing Vehicle Excise Duty.

No change to the High Income Benefit Charge threshold from £60,000.

Alcohol duty will be uprated with the RPI on 1 February 2026.

Extension of the temporary 5p fuel duty cut for a further five months, with the cut being reversed in three stages: 1p on 1 September 2026, 2p on 1 December 2026 and 2p on 1 March 2027.

High Value Council Tax Surcharge: introduction of the High Value Council Tax Surcharge from 2028/29. This will be a new charge on owners of residential property in England worth £2 million or more. Local authorities will collect this revenue on behalf of central government.

Salary sacrifice changes: employer and employee NICs charges will apply on pension contributions above £2,000 per annum made via salary sacrifice. This will take effect from 6 April 2029.

From April 2026 the VCT income tax relief will decrease to 20% (from 30%).