The Chancellor, Rachel Reeves MP, delivered the Budget 2025 announcement on Wednesday 26th November 2025. We provide a full summary of the announcements below to help you understand the potential impact on your business with analysis from our Corporate Patron, AAB Group.
We encourage members to take the time to read through this important, detailed and straightforward guide, pulled together by the expert Tax Team at AAB Group on the key points that matter, what’s changed and what it means for your business.
KEY POINTS:
- Personal tax allowances and rates on general income frozen for a further three years to April 2031
- Also frozen: NICs employer threshold and upper earnings limit, and IHT nil rate band, to April 2031; Plan 2 Student Loan repayment threshold to April 2030
- No immediate changes to reliefs on pension schemes, but salary sacrifices above £2,000 to be subject to National Insurance from April 2029
- Increases in income tax rates on dividend income from April 2026, and on rental and savings income from April 2027
- Only minor changes to Inheritance Tax rules announced last year
- ISA investment limits and rules remain the same, but from April 2027 new £12,000 limit for cash within the £20,000
- Corporation and Income Tax rates (on earned income) unchanged, but Writing Down Allowances reduced from April 2026; new FYA from 1 January 2026