The Budget – November 26th 2025

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Summary Impact

The 26th November Budget delivered several key announcements that will affect Financial Planning. Most notably:

  • Inheritance Tax – The inheritance tax nil-rate band and residence nil-rate band being frozen for a further year until 2030/31.
  • Tax Thresholds – Personal tax thresholds, and equivalent national insurance (NIC) thresholds, being frozen for a further three years until 2030/31.
  • Dividends – An additional 2% tax charge added to the basic and higher rates of tax on dividends from 6 April 2026.
  • Savings Income – An additional 2% added to all rates of tax on savings income from 6th April 2027.
  • Property Income – Separate tax rates for property income profits: 22% for basic rate, 42% for higher rate, 47% for additional rate taxpayers from 6 April 2027.
  • Salary Sacrifice – A £2,000 cap on the amount that can be sacrificed into a pension without paying NICs from 6 April 2029.
  • ISAs – A new £12,000 annual limit on cash ISAs (for under-65s) from 6 April 2027.
  • Venture Capital Trusts – Venture Capital Trust income tax relief decreasing to 20% from 6 April 2026.
  • Mansion Tax – A High Value Council Tax Surcharge applying to properties valued at £2 million or more from 2028.

The tax changes announced once again reinforce the importance and value of informed and
up to date financial advice.

If you would like to review and discuss how these changes might affect you and your financial plans, please do get in touch:

Andrew Smith andrew@michaelforward.co.uk 01908 504083
Michael Forward michael@michaelforward.co.uk 01604 635 435