• National minimum wage – will rise in April 2026.
💵National Living Wage (21 +) £12.71 up 4.1%
💵18-20 Year Old £10.85 up 8.5%
💵 16-17 Year Old £8.00 up 6%
💵Apprentice Rate £8.00 up 6%
• National Insurance on Salary Sacrifice Pension – April 2029 anyone paying over £2,000 a year into a salary sacrifice pension will pay NI at the normal rate on anything above the £2,000.
• Tax Threshold – This will remain at £12,570 until April 2031.
• State Pension 👵 – to rise 4.8% increase of £575.00 per year.
• VAT – No change to VAT thresholds or rates.
• Corporation Tax – no changes to tax rate.
• Capital Allowances for Corporation Tax and Income Tax – Rate of writing-down allowance (WDA) on the main pool of plant and machinery from 18% to 14%. They are also introducing a First Year Allowance (FYA) of 40% for main rate expenditure.
• Capital Gains Tax – Employee Ownership Trust CGT relief reducing from 100% to 50%
• Savings Income (Interest) – from April 2027
📈Basic Rate will increase to 22%
📈Higher Rate will increase to 42%
📈Additional Rate will increase to 47%
• Dividend Income – from April 2026
📈Basic Rate will increase to 10.75%
📈Higher Rate will increase to 33.75%
📈Additional Rate stays the same at 39.35%
• Property Income – from April 2027 there will be a new tax rate for property income
🏠Basic Rate will be 22%
🏠Higher Rate will be 42%
🏠Additional Rate will be 47%
🏠Finance cost relief will be provided at the separate property basic rate of 22%
• Electric Vehicle Excise Duty (eVED) – from April 2028 Electric and Plug-In Hybrid cars will pay for their mileage alongside their existing Vehicle Excise Duty (Car Tax)
🚗3p per mile for Electric cars
🚗1.5p per mile for Plug-In Hybrid vehicles
• Ride-Sharing Apps (Uber/Bolt) 🚕 – From 2 January 2026, the government will close the loophole that allows businesses to use the Tour Operators Margin Scheme and pay VAT only on their profit. Going forward, they will pay VAT on the full fare amount.
• ISA Savings – From April 2027, the government will reduce the annual Cash ISA allowance for people under 65 from £20,000 to £12,000. The allowance for those aged 65 and over will stay at £20,000, and the Stocks and Shares ISA allowance will remain £20,000.
• Gambling Duty – from April 2026
🎲remote gaming duty on online casinos will rise from 21% to 40%.
🎲The government has abolished the 10% Bingo Duty
🎲 New Online-only rate of general betting duty levied to operators income from sports betting rise to 25% (High Street bookies remain at 15%)
• Stamp Duty 🏠 – No changes
• High Value Council Tax Surcharge (Mansion Tax) – From April 2028, the government will introduce an annual surcharge on homes worth more than £2 million. As a result, homeowners will see this charge added to their existing council tax.
🏦 £2m – £2.5m surcharge of £2,500
🏦 £2.5m – £3.5m surcharge of £3,500
🏦 £3.5m – 5m surcharge of £5,000
🏦 £5m + – £7,500
• Tobacco duty 🚬 – from 26 November 2025 to increase with RPI +2% and from 1 October 2026 an increase of £2.20 per 100 cigarettes and £2.20 per 50g of all other tobacco products.
• Vaping Tax – from 1st October 2026 a new tax will be introduce costing £2.20 per 10ml bottle as per previous budget.
• Universal Credit – From April 2026, they are lifting the two-child limit. Therefore, families will now receive the child element of Universal Credit for all children, regardless of family size.
• Energy – From April 2026, the government will cut energy bills by £150 by reducing levies.
