Rachel Reeves’ second Autumn Statement was highly anticipated. She announced it today (26 November) ending weeks of speculation.

How does the Autumn Budget impact you or your business? Here’s a handy summary of the key points announced today (26 November).

If you have any queries or concerns, talk to the team at Spicer & Co. We’ll cut through the jargon, offering clear advice … and a coffee.

Personal Tax

• National Insurance and income tax thresholds are to remain frozen for an additional three years, until 2028.
• The annual ISA allowance will be kept at £20,000 for stocks and shares ISAs. The annual Cash ISA allowance for people aged under 65 will decrease to £12,000. Savers aged 65 and over can still save up to £20,000pa in cash ISAs.
• Tax on dividends and savings is to increase by 2% (basic and higher tax rates)
• A new income tax rate for property tax was announced. From April 2027, the property basic rate will be 22%, the property higher rate will be 42% and the property additional rate will be 47%. Finance cost relief will be provided at the separate property basic rate (22%).
• A £2,000 cap on salary sacrifice from pensions will apply in 2029.

Business Tax

Business tax thresholds and rates remain unchanged. However, employers will face additional costs due to minimum wage increases (see below).

Support was offered to the retail, hospitality and leisure sectors, introducing permanently lower tax rates for over 750,000 retail, hospitality and leisure properties. Also affecting the leisure sector, English regional mayors to be given powers to tax overnight stays in hotels and holiday lets, echoing existing plans in Scotland and Wales.

Online gambling profits are to be taxed at 40% (now 21%), and the current 10% bingo tax is to be abolished.

Benefits and Wages

• Many families will welcome the scrapping of the cap limiting households on universal or child tax credit from receiving payments for a third or subsequent child. This is to be implemented in April 2026.
• National Minimum Wage for 18 to 20 year olds will increase from £10 to £10.85 an hour.
• Living Wage and National minimum Wage for 21 years old and over will go up from £12.21 to £12.71 an hour.
• Free apprenticeships are to become available to SMEs.

Property

The anticipated “mansion tax” was confirmed. This will be an annual £2,500 charge for properties worth more than £2m, rising to a £7,500 for properties worth more than £5m. This move involves revaluing homes in bands F, G, and H. The surcharge will be collected alongside council tax.

Transport

• A range of announcements affected travellers. Rail fares are to be frozen for the next year and fuel duty remains the same until September 2026.
• A new tax for electric vehicles and plug-hybrid cars is to be introduced in 2028.
• The Motability scheme enables people claiming particular disability benefits to lease vehicles more cheaply. Premium vehicles are to be excluded from the scheme.

Additional News

The Chancellor stated her intention to tackle Construction Industry Scheme fraud and promoters of tax avoidance. She also confirmed the anticipated expansion of the sugar levy to milk products (such as lattes and milkshakes) from 2028.