November 28, 2025
The Autumn Budget delivered no changes to the headline rates of income tax or National Insurance, but instead introduced a series of “slow burn” tax increases that will affect many private clients over the coming years. Much of this comes through frozen thresholds, higher taxes on investment income and tighter rules around pensions and estate planning.
Below are the key takeaways most relevant to families, investors, business owners and retirees. A link to our full 10-page Brighton Capital Management Budget Report is included at the end for those who would like the deeper analysis.
From 2026 and 2027, the tax payable on dividends, savings interest and property income will rise materially. Dividend tax increases for basic and higher rate taxpayers (to 10.75% and 35.75%) begin in April 2026, with new 22% / 42% / 47% rates for interest and rental income following in April 2027.
Why it matters:
Clients holding investments outside ISAs and pensions are likely to feel the impact most. Reviewing unwrapped portfolios, using tax shelters and considering “bed & ISA” strategies will become increasingly important.
The personal allowance and higher rate thresholds remain frozen at £12,570 and £50,270 until April 2031.
Why it matters:
More people will be pushed into higher tax bands through “fiscal drag”, increasing the value of planning around the £100,000 threshold (where the effective 60% marginal rate still applies).
The £20,000 ISA limit stays in place, but from April 2027 those under age 65 will only be able to hold £12,000 a year in Cash ISAs, with the remainder needing to be invested.
Why it matters:
For cautious savers, this nudges more ISA capital towards investments rather than cash. ISA maximisation continues to be one of the simplest and most effective ways to protect long-term wealth.
While contribution allowances remain unchanged, two significant shifts affect long-term planning:
Why it matters:
There is a clear four-year window in which salary sacrifice remains fully effective. The new IHT treatment also means pensions can no longer automatically be viewed as the final asset to draw in retirement.
For entrepreneurs and owner-managed businesses, several measures stand out:
Why it matters:
Profit extraction, pension funding and incentive structures may need reviewing. For existing VCT investors, there may be one last opportunity to invest under the current relief level.
Nil rate bands are frozen until 2031, and from April 2026 Business and Agricultural Property Relief offer 100% relief only on the first £1 million of combined qualifying assets per person, with 50% relief beyond that.
Why it matters:
More estates will be exposed to IHT, and business owners in particular should review ownership structures, trust planning and succession strategies.
This Budget reinforces a steady shift towards higher taxation of income and wealth, delivered gradually over several years. The good news is that clients have time to adapt – and early planning will make a meaningful difference.
We will continue to integrate these changes into our clients’ reviews and long-term plans. If you would like to discuss how the Budget affects you, please contact us.
👉 Download the full Brighton Capital Management Autumn Budget 2025 Report (10 pages) for a deeper analysis.
November 29, 2016 in
As published in the Brighton Argus (29.11.16) Business on page 21 under the title Pegler’s Market Report: Consumers rack up debt at fastest...
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