"The 2% increase to dividend tax rates, property and savings (raising over £2 billion) presumably breaks Labour's manifesto pledge not to increase Income Tax. The reduction in the cash ISA limit to £12k will cost a higher rate taxpayer over £140 in income tax (assuming interest rate of 4.5% and no personal savings allowance). The ISA regime has just been made (even more) unnecessarily complicated by having a different regime for over-65s. I understand the logic but this is making a mess of ISAs."
"The changes to salary sacrifice pensions from 2029 are another damaging blow to business after last year's employer's NIC increase. This will be inflationary and lead to further job losses. It was a certainty that personal tax allowances and thresholds would be frozen in today's Budget. I wasn't expecting it would be for another 3 years and would drag almost 1 million people into higher rate (40%) tax."
"The real impact of frozen tax allowances and thresholds. Someone earning £20k is almost £600 worse-off today; they will be over £1,000 worse-off in 2031. The personal allowance will be frozen at £12,570 until 2031. Had it increased with inflation, it should today be worth nearly £16k; and it should be worth closer to £18k. This is a significant tax increase on 'working people' on lower incomes."
Autumn Budget 2025 increases dividend, property and savings taxes and reduces the cash ISA limit to £12k, raising over £2 billion. ISA rules are differentiated for over-65s, increasing complexity. Salary sacrifice pension changes from 2029 will raise employer costs, risk inflationary pressure and could lead to job losses. Personal tax allowances and thresholds are frozen until 2031, dragging nearly one million people into the 40% band and reducing real incomes for lower earners. The personal allowance stays at £12,570 despite inflation, representing a significant effective tax rise on working households.
Read at London Business News | Londonlovesbusiness.com
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