26/11/2025
Budget 2025 – Key Points for Individuals & Small Businesses
The Chancellor has announced a range of tax changes that will affect earnings, investments and property over the next few years:
• Dividend tax rising from April 2026
Basic and higher-rate dividend tax will each increase by 2 percentage points.
(Ordinary rate rising from 8.75% → 10.75%, higher rate from 33.75% → 35.75%. Additional rate unchanged.)
• Savings and property income to be taxed more from April 2027
A 2-point rise on savings income, plus new separate property-income tax rates at 22%, 42% and 47% depending on your income band.
• Income tax thresholds frozen until 2030/31
More people may move into higher tax bands over time as earnings rise.
• New levy on high-value homes (from 2028)
Properties worth over £2 million will face an annual surcharge.
• ISA changes
Cash ISA allowance will be reduced for under-65s from 2027.
These measures increase the overall tax burden, particularly for those who receive income from dividends, savings, or property. Small business owners may want to review their salary/dividend mix and long-term planning ahead of the 2026–27 changes.
