United Kingdom

Autumn Budget 2025

On 26 November 2025, the United Kingdom (UK) Chancellor of the Exchequer, Rachel Reeves, delivered her Autumn Budget. A number of changes were announced that will impact the taxation of individuals. Below is a summary of the key announcements:

Freeze on income tax and inheritance tax (IHT) thresholds

Personal income tax and IHT thresholds will remain frozen until the 2030/31 tax year. 

New tax rates for property, savings, and dividend income 

From April 2026, the basic and higher rates of tax on dividend income will increase by 2% to: 10.75% (basic), 35.75% (higher), and 39.35% (additional – no change). From April 2027, the rates of tax for property and savings income will increase by 2% to: 22% (basic), 42% (higher), and 47% (additional).

Changes to dividend and savings income apply across the United Kingdom. The changes to property income do not apply in Scotland, and there will be consultation with the devolved governments of Scotland and Wales on property income rates.