Take a look at our budget breakdown, including key points and tax information.
Budget highlights
- The income tax personal allowance and thresholds, as well as employee and self-employed national insurance contribution thresholds, will be frozen for another three years, until 6 April 2031.
- Tax rates on dividends will rise for basic and higher rate taxpayers by two percentage points from 2026/27. On savings income and property income, rates will rise by two percentage points from 2027/28 for basic, higher and additional rate taxpayers.
- Salary sacrifice to fund pension contributions will effectively be capped at £2,000 a year, starting in 2029/30.
- From April 2028 a high value council tax surcharge will be introduced on properties valued at over £2 million.
- A pay-per-mile charge will be introduced for electric vehicles (including hybrids) from April 2028.
- Unused inheritance tax (IHT) agricultural and business reliefs will be transferable between spouses and civil partners on death.
- The IHT nil rate band and residential nil rate band will be frozen for another year until 6 April 2031.
- The maximum subscription to cash ISAs will be reduced to £12,000 from 2027/28 for those under age 65, but the overall ISA limit will remain at £20,000.
- The two child benefit cap will be scrapped from April 2026.
- Enterprise management incentive eligibility will be increased to allow scale-ups, as well as start-ups, from April 2026.