Accountants in Wiltshire

The Chancellor of the Exchequer, Rachel Reeves delivered her latest Budget on 26 November 2025. Highlights include:

Income Tax Personal Allowance will be frozen for an additional three years from 2028
From 2027/28, the property basic rate will be 22%, property higher rate 42%, property additional rate 47%
From 2026/27, the ordinary and upper rates of taxation on dividends will be increased by 2% to 10.75% and 35.75%. The additional rate for dividend income will remain unchanged at 39.35%.
From 2027/28, all rates applicable to savings income will be increased by 2%. The savings basic rate will be 22%, savings higher rate 42%, savings additional rate 47%. The Starting Rate for Savings will be retained at £5,000 for 2026/27 and will stay at this level until 5 April 2031.
Certain reliefs will now only be applied to property, savings and dividend income after they have been applied to other sources of income. This change will take effect from 6 April 2027.
From 6 April 2027, the annual Individual Savings Account (ISA) cash limit will be set at £12,000, within the overall annual ISA limit of £20,000. Savers over the age of 65 will continue to be able to save up to £20,000 in a cash ISA each year. Other limits remain £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2031.

From 6 April 2029, the government will charge employer and employee NICs on pension contributions above £2,000 per annum made via salary sacrifice.
From 1 April 2026, the National Living Wage will increase by 4.1% to £12.71 per hour. The National Minimum Wage for 18-20 year olds will also increase by 8.5% to £10.85 per hour and for 16-17 year olds and apprentices by 6.0% to £8.00 per hour.

The government will introduce a new 40% First Year Allowance (FYA) for main rate expenditure (including most expenditure on assets for leasing and expenditure by unincorporated businesses) from 1 January 2026. From 1 April 2026 for Corporation Tax and 6 April 2026 for Income Tax, main rate writing down allowances will reduce from 18% to 14%.
The government will extend for a further year the 100% FYA for qualifying expenditure on zero emission cars and electric vehicle (EV) chargepoints until 31 March 2027 for corporation tax purposes and 5 April 2027 for Income Tax purposes

For full overview, please click image below.