Autumn Budget Summary 2025

With the release of the UK Autumn Budget 2025, we’ve prepared a concise summary of the key highlights and their potential impact on both your business and personal finances. To access the full summary, simply complete the form at the bottom of this blog to download your copy.

Changes to tax rates from April 2026:

	Basic Rate	Higher Rate	Additional Rate
Dividend income (From April 2026)	10.75%	35.75%	39.35%
Property income (From April 2027)	22%	42%	47%
Savings (From April 2027)	22%	42%	47%

• The same increase will apply to corporation tax payable on loans to close company participators which are not repaid to the company within 9 months of its year end
• The basis for company car benefit charges increases by one percentage point for 2026/27
• Benefit charges for company vans and private fuel in company vehicles increased
• Confirmation of the introduction of Making Tax Digital for Income Tax Self-Assessment from April 2026, with easements for the first year in relation to filing penalties
• Corporation Tax late filing penalties doubled from 1 April 2026
• CGT rate on disposals qualifying for Business Asset Disposal Relief increased from 14% to 18%
• Increases in National Living Wage to £12.71 per hour 

Investment:

• EIS Limits Revised for April 2026

	Current Rate	From April 2026
Annual company investment limit	£5m (£10m for knowledge intensive companies)	£10m (£20m for knowledge intensive companies)
Lifetime company limit	£12m (£20m for knowledge intensive companies)	£24m (£40m for knowledge intensive companies)
Gross assets test	£15m before share issue; £16m after share issue	£30m before share issue; £35m after share issue

• EMI Scheme: From April 2026 the following limits will apply:
  • the total value of company options that can be unexercised at any time will be increased from £3 million to £6 million;
  • gross assets will be increased from £30 million to £120 million;
  • the number of employees will be increased from 250 to 500 employees.

The maximum holding period will also be increased from 10 to 15 years, and this can be applied to existing as well as new EMI contracts.  

No requirement to notify of new EMI options granted from April 2027.

Succession Planning:

• 100% CGT relief for disposals of shares to Employee Ownership Trusts is restricted to 50% from 26 November 2025
• Agricultural and Business Property £1m allowance can be transferred between spouses.

This short summary highlights key areas that will have an impact on small businesses and individuals. For a full breakdown of the Autumn Budget 2025, download our summary.

If you have any questions relating to any of the areas within the Autumn Budget, please contact us on the details below.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk