Following the Chancellor’s Autumn Budget, we’ve outlined below a timeline of the main measures announced.
April 2026
MINIMUM WAGE & LIVING WAGE
After what were widely recognised as already quite sizeable rises in April 2025 this year, these further increases will see 18–20-year-olds earning £10.85 per hour (+85p) and over 21’s £12.71 (+50p) from 1 April next year.
DIVIDEND TAX
Tax rates for dividends will increase by 2% taking the basic rate to 10.75% and the higher rate to 35.75%
BUSINESS RATES
Reduced multiplier rates will come into effect for Retail, Hospitality & Leisure business premises with a rateable value under £500,000.
CHILD BENEFIT
The two-child cap will be scrapped, with the aim of lifting more children out of poverty.
INHERITANCE TAX
A change will be introduced to allow the transfer of the 100% combined Agricultural Property Relief and Business Property Relief on death to the surviving spouse when the £1m cap is introduced.
April 2027
SAVINGS & PROPERTY INCOME
Tax rates for savings and property income will be subject to an additional 2% taking the basic rate to 22%, the higher rate to 42% and the additional rate to 47%.
ISA REFORMS
The annual cash ISA allowance will be reduced from £20,000 to £12,000 for savers under 65 years old. The remaining £8,000 can still be invested but only in a stocks and shares ISA. Those over the age of 65 will be able to continue benefiting from a full £20,000 cash ISA allowance.
April 2028
INCOME TAX THRESHOLDS
Originally due to be reviewed in April 2028, thresholds will now continue to be frozen until 2031.
HIGH VALUE COUNCIL TAX SURCHARGE
Owners of properties valued at more than £2 million will start to pay an annual surcharge from April 2028. This “mansion tax” will range from £2500 - £7500 and will be subject to future annual inflationary increases.
ELECTRIC VEHICLES
To ensure that all road users contribute, the chancellor announced a proposed pay per mile type of road tax for electric vehicles, though we don’t yet know how this will be implemented.
April 2029
SALARY SACRIFICE PENSION CONTRIBUTIONS
The amount of money that employees can put into their private pension pot will be capped at £2000 with any additional contributions subject to national insurance.
And not announced as part of the budget, but worth noting if your bank balance is healthy. . .
December 2025
FINANCIAL SERVICES COMPENSATION SCHEME (FSCS)
The protection for clients in the event of a bank or building society going out of business, will be raised from £85,000 to £120,000 with effect from 1 December 2025. Don’t forget this protection is per bank rather than per account, so funds in excess of £120,000 should be placed with a different banking provider.
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Janet, Elaine, Lucy, James, Josh, Dawn, Becky, Nat & Leanne
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