{"id":18786,"date":"2025-11-28T17:19:10","date_gmt":"2025-11-28T17:19:10","guid":{"rendered":"https:\/\/ctt-group.co.uk\/accountancy\/?p=18786"},"modified":"2025-12-02T08:40:51","modified_gmt":"2025-12-02T08:40:51","slug":"ctt-accountancy-autumn-budget-2025-roundup-what-it-means-for-you","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/accountancy\/ctt-accountancy-autumn-budget-2025-roundup-what-it-means-for-you\/","title":{"rendered":"CTT Accountancy Autumn Budget 2025 roundup \u2013 what it means for you"},"content":{"rendered":"
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The 2025 Autumn Budget was announced on Wednesday 26th November. In it, Chancellor of the Exchequer Rachel Reeves set out tax-raising measures worth up to \u00a326 billion aimed at closing the gap in public financing.<\/p>\n

These increases, which the government is opting for over public spending cuts, will be achieved through a range of measures that focus on pushing up public taxes for the wealthiest individuals. The aim is to increase headroom and invest more in public services including schools and the NHS as set out in the spending review.<\/p>\n

Reeves also promised to cut debt, borrowing, and the cost of living and to tackle child poverty head-on, which she describes as \u201cthe biggest barrier to equal opportunity\u201d.<\/p>\n

But what does this mean for you?<\/p>\n

Income Tax<\/strong><\/h3>\n

These measures mark the single biggest tax-raising initiative in the Budget and could see many people pushed into higher tax brackets.<\/p>\n

The tax-free personal allowance is fixed at the current level of \u00a312,570 and will remain frozen until April 2031. Rates of Income Tax are to remain the same with the basic threshold set at \u00a337,700, and the higher rate at \u00a350,270. The additional rate threshold remains at \u00a3125,140. The freeze of these thresholds will also continue until April 2031.<\/p>\n

For higher earners, there is a reduction in the personal allowance for those with \u2018adjusted net income\u2019 over \u00a3100,000. The reduction is \u00a31 for every \u00a32 of income above \u00a3100,000. This means that there is no personal allowance where adjusted net income exceeds \u00a3125,140.<\/p>\n

With thresholds frozen and increases in minimum wage, this means that almost everybody will be contributing towards paying more tax.<\/p>\n

Tax on property income<\/strong><\/h3>\n

Property income is any income you make from letting out land and buildings. Every individual has a Property Allowance of up to \u00a31,000. Property income over \u00a31,000 can be offset either by the \u00a31,000 Property Allowance or by deducting relevant expenses.<\/p>\n

The government is introducing the following separate tax rates for property income from 2027\/28:<\/p>\n