On 26 November 2025, the Chancellor delivered a Budget that will impact almost every household and business over the coming years. While billed as a stabilising Budget, many of the measures announced will increase the tax burden for working people, savers, homeowners, landlords and business owners.
At Bicknell Business Advisers, we have reviewed the full report to highlight the changes that will affect the largest number of people — in practical, jargon-free terms. Download a 20 page report from our website www.bicknells.net
Frozen Income Tax Thresholds Until 2031
One of the most far-reaching changes is the decision to freeze income tax thresholds for an additional three years, now running until 2030/31. This means:
- Your personal allowance stays at £12,570
- Higher-rate and additional-rate thresholds are fixed until 2031
- As incomes rise, more people will drift into paying higher tax bands
This “fiscal drag” will increase the tax paid by employees, pensioners and the self-employed over time.
Higher Taxes on Savings, Dividends and Property Income
From 2026–2027, several significant rate increases will affect investors, company directors and landlords.
Dividend Tax Increases (from April 2026)
- Basic rate: 10.75%
- Higher rate: 35.75%
(an increase of 2 percentage points)
Savings & Property Income Tax Increases (from April 2027)
- Basic rate: 22%
- Higher rate: 42%
- Additional rate: 47%
For many people, this will mean higher tax bills on rental income, interest, and dividends extracted from a company.
New High-Value Property “Mansion Tax”
From April 2028, a new council tax surcharge will apply to properties worth more than £2 million.
- Annual charge: £2,500 to £7,500
- Applies to the homeowner, not the occupier
- Valuation will be set before the tax is introduced
This will particularly affect landlords, holiday let owners and those with high-value main residences.
ISA Changes: Cash Limit for Under-65s
The overall ISA limit stays at £20,000, but major changes arrive in April 2027:
- Under-65s can only place £12,000 each year into a cash ISA
- Over-65s retain the full £20,000 cash ISA allowance
This will be a significant shift for regular savers who rely on tax-free returns.
Minimum Wage Increases (April 2026)
Millions of UK workers will receive a pay rise:
- National Living Wage (21+): £12.71
- 18–20 Rate: £10.85
- 16–17 & apprentices: £8.00
This change benefits workers but increases payroll costs for employers — something business owners should factor into 2026/27 planning.
Electric Vehicle Road Charge Introduced
From April 2027, the UK will introduce a mileage-based road charge:
- 3p per mile for electric cars
- 1.5p per mile for hybrids
This marks the beginning of a new era in EV taxation as the government seeks to replace lost fuel duty revenue.
Corporation Tax: No Change to Rates
Corporation tax remains unchanged into 2026/27:
- 19% small profits rate
- 25% main rate for profits over £250,000
However, combined with increased dividend taxes, company directors should review their remuneration strategies.
Making Tax Digital (MTD) Moves Forward
For sole traders and landlords with turnover above £50,000, MTD for Income Tax becomes mandatory from April 2026:
- Quarterly digital submissions required
- No penalties for late quarterly filings in year one
- Annual submissions still required
This is a major shift for property landlords and small businesses.
Stamp Duty: No Changes for Homebuyers
There were no changes to Stamp Duty Land Tax (SDLT) in England or Northern Ireland:
- Threshold remains £125,000
- First-time buyer relief unchanged
- Additional property surcharges continue to apply
This stability will be welcomed by buyers and landlords planning acquisitions.
How Bicknell Business Advisers Can Help
These Budget changes mean many individuals and businesses will face higher tax bills and greater compliance obligations. Early planning is essential.
We can support you with:
- Personal tax planning for 2026 and beyond
- Dividend and remuneration strategies
- Property and landlord tax reviews
- Business planning for wage and NIC changes
- Preparing for Making Tax Digital
- Inheritance tax and estate planning
If you’d like personalised advice, please get in touch.
We’re here to help you plan with confidence.
https://www.bicknells.net/meet-the-team
