Following Rachel Reeves’ budget earlier today we have summarised below the key tax changes and announcements she has made:

• Income tax thresholds will be frozen until the end of the 2030/31 financial year.
• ISAs – From April 2027 Cash allowance to be reduced to £12k for under 65s
• 2% increase to tax rates on dividends, property and savings income
• High value council tax surcharge for properties valued over £2m from 2028
• Salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from National Insurance from April 2029
• CGT relief on sales to Employee Ownership Trusts reduced from 100% to 50%
• EV excise duty payable each year 3p per mile for EVs, 1p per mile PHEVs
• Alcohol, tobacco and vaping duty to increase as announced last year
• Soft drinks levy (Sugar tax) to cover milky packaged drinks and limit reduced to 4.5g/100ml
• Gambling taxes reformed increased from 21% to 40%, online betting 15% to 25%. No changes to in person or horseracing. Abolishing bingo duty entirely from 2026.
• No increase to rates of income tax, NIC or VAT
• The two-child benefit cap has been removed
• Freezing prescription charges and rail fares
• National minimum and living wage increased. Minimum wage from £10.00 to £10.85 Living wage from £12.21 to £12.71
• Fuel duty will be frozen at its current rate until September 2026.
• Business Rates – permanently reduced rates for smaller premises. The government will introduce “permanently lower tax rates” for more than 750,000 retail, hospitality and leisure properties. The move will be funded through higher rates on properties worth £500,000 or more, such as warehouses used by online retail giants.
• Motability scheme reformed to remove luxury cars
• SME Apprenticeship funding for under 25s to make completely free
• Capital allowances – The main rate for WDAs will be reduced from 18pc to 14pc from April 2026, while there will also be a new 40pc first-year allowance for companies from January 2026.
• OBR upgrades Britains growth rate this year from 1% to 1.5% but downgrades forecasts for the following four years
• OBR expects inflation to reach 3.5% for this year. It has also lifted next year’s forecast from 2.1% to 2.5%.
• The tax increases will bring the tax take to an all-time high of 38 per cent of GDP in 2030-31

Our full detailed guide on the Budget and our Tax Tables will be on our website from tomorrow so please check back or keep an eye on our social media channels.

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