The Chancellor delivered the Autumn Budget yesterday, setting out a series of tax and policy changes that will affect savers, investors, homeowners and retirees over the coming years. As always, the detail matters, especially for long-term financial planning, so our team has reviewed the statement and highlighted the areas most relevant to MPA clients.

The full picture is captured in our comprehensive Budget Guide, but below is an overview of the measures likely to have the greatest impact. Our full Budget Guide is available to download here – Autumn Budget 2025 – MPA Financial Management.

Dividend and Savings Tax

Dividend taxation will rise for the first time since 2022, with higher rates across all bands from April 2026. Savings interest tax will also increase from April 2027, affecting anyone drawing income from savings or running a limited company.

ISA Changes

The Cash ISA allowance for adults under 65 will fall from £20,000 to £12,000, although the overall ISA allowance remains £20,000. LISAs are set to be withdrawn in the future, subject to final timings. This will be particularly significant for younger savers and first-time buyers.

VCT Relief Reduced

Income tax relief on Venture Capital Trusts will reduce from 30% to 20%, a notable shift for higher-rate taxpayers and those using VCTs as part of tax-efficient planning. Future returns will depend more heavily on underlying investment performance.

Pensions and Salary Sacrifice

A new £2,000 annual cap on salary sacrifice arrangements will be introduced, limiting the scope for higher-earning employees to maximise tax-efficient contributions.
The State Pension triple lock will be maintained, leading to an increase of 2.5% from April 2026. PPF and FAS members will also see increases for pre-1997 benefits.

Property & Homeownership

A new property surcharge will apply to homes valued above £2 million, and landlords will face an additional 2% tax on rental income. The long-term direction of travel points to reduced reliefs and tighter taxation for property investors.

Cost of Living Measures

The Budget introduced a range of support measures — including a £150 reduction in energy bills, National Living Wage increases and prescription charge freezes — largely aimed at lower-income households, pensioners and families.

Download the Full Guide

Our detailed Autumn Budget 2025 Summary and Guide provides a clear breakdown of all the announcements that may influence tax planning, retirement strategy and long-term financial objectives.

You can read the full document here: Autumn Budget 2025 – MPA Financial Management.

If you have any questions about how the changes may affect you personal circumstances and long term financial plan please get in touch.