More Tax! - Budget 2025 Key Changes

charleneash2
3 hours ago
2 min read

The Labour Autumn Budget has been announced by Chancellor Rachel Reeves and was broadcast live at 12.30pm today. There have been many rumours this year and its created quite a frenzy of anxiety that isn't good for the economy. The OBR report was even released before the Budget Announcement and this was criticised by the Deputy Speaker of the House.

Budget 2025 - picture of Chancellor Rachel Reeves with the red box in front of Number 11 Downing Street

Let's have a look at what could be getting people worried. these are the key elements from the Budget 2025 today:

Annual mansion tax hike for properties over £2,000,000 from 2028. Many people could be hit with a bill of £2500 per year and this will rise to £7500 per year for properties over £5 million. Will owners have the income or savings to fund an annual payment?

Cash ISA annual amount to be cut from £20,000 to £12,000 for under 65's. An ISA is a way of gaining interest on savings in a tax free manner so this is a way of gaining more tax from savers. The remaining £8000 must be placed in investments. Over 65's retain the £20,000 threshold.

National Minimum Wage increase has been announced today which will affect employers and may limit recruitment especially for small businesses

Cutting the two Child Benefit Cap to provide more benefits for families with over two children.

Changes to Salary Sacrifice for employees and an annual limit of £2000 to be introduced from 2029 which will limit tax free pension contributions.

Are you a Landlord renting out properties? You can expect higher rates of tax on your rental income. A new basic rate threshold is introduced for Property Tax of 22% with a higher rate of tax of 42% and a additional rate of 47%
Dividend Tax Rates are on the up as well for business owners with a basic rate of 10.75%, higher rate of 35.75% and the additional rate of 39.35%.
Interest for Savers will be taxed at a higher rate, 22% for the basic rate, 42% the higher rate and 47% for the additional rate.

Picture of Chancellor Rachel Reeves with her red Budget box with the headline for the new Mansion Tax as she prepares for the Budget 2025

Please contact us for expert advice on how the Budget 2025 may affect you. It's not a popular one that's for sure. We can help you to manage your tax affairs, create legal documents to help with your finances, such as a Will or a Power of Attorney and we can translate the legal jargon of the budget for you.