Autumn Budget 2025. Decoded.

Every Autumn Budget arrives with a flood of information. Technical terms. Long explanations. Policy notes that take time to translate. This year is no different. So we’ve cut through the noise and broken everything down clearly. Here’s what was announced and what it means for you.

The key takeaways

Income tax & National Insurance

Income tax thresholds remain frozen. But, the government has introduced a new rule for some types of income. Income from property, savings and dividends will be taxed 2% higher than before. Standard rates for employment income remain the same.

Pension contributions through salary sacrifice

One of the biggest updates focuses on pension savings. From April 2029, pension contributions made through salary sacrifice above £2,000 per year will be subject to National Insurance.

This narrows the tax advantage of salary-sacrifice contributions for higher earners. If your pension contributions are typically below this amount, you’re unlikely to notice a change. If you contribute more, it’s worth reviewing how this may affect your take-home pay and long-term planning.

Wealth & property taxes

The Budget introduces a new council-tax style surcharge on residential properties valued above £2 million.

This measure aims to raise revenue from the highest-value homes. No major changes were announced for capital gains tax or for people moving abroad, making this surcharge the main update within wealth-related taxation.

Targeted support

Support for households most affected by rising living costs is expanding. Key measures include:

• A freeze on national rail fares
• Minimum wage increases
• Continued cost-of-living payments
• The removal of the two-child benefit cap

These updates are designed to ease pressure on lower-income households and those who’ve been hit hardest by everyday cost increases.

Wrapping up

This year’s Budget focuses on steady, revenue-raising changes rather than large-scale reform. Frozen thresholds, targeted pension rules and a surcharge on high-value homes make up the core of the tax updates. Meanwhile, expanded support aims to help households facing ongoing cost pressures. By understanding what’s changed, you’ll have a clearer view of how the Budget may affect your finances in the year ahead.