No headline tax rate changes, just frozen thresholds and stealthy tweaks in this year's Autumn Budget.

Here's what you need to know when it comes to personal tax changes:

Frozen thresholds

The Budget’s main announcement was the decade‑long freeze: personal allowance, higher‑rate and additional‑rate thresholds locked at April 2021 levels until 2031. The freeze drags millions into higher tax bands.

Scotland, meanwhile, waits for the Scottish Budget in January, with the Scottish Government promising no rate rises but leaving threshold moves on the table.

Earners

From April 2029, only the first £2,000 of salary‑sacrifice pension contributions will escape NIC charges. That hits lower earners in the 8% NIC band harder than those in the higher 2% band. For someone earning around £50,000, sacrificing 7% of pay into their pension, the combined NIC bill for employee and employer jumps about £345. This could make employers rethink the perks they offer.

Expect benefits packages to look different going forward: less emphasis on big ticket pensions and private healthcare, more on flexibility, growth and the autonomy younger workers demand.

Property owners

From April 2027, landlords (outside Scotland) face higher income tax on rental income - 

• 20% → 22%
• 40% → 42%
• 45% → 47%

- framed as levelling the field with tenants who pay NIC. But mortgage interest restrictions already make many landlords feel disadvantaged. The mortgage interest tax reducer does nudge up from 20% to 22%, a small consolation prize.

From April 2028 a High Value Council Tax Surcharge lands on owners of English homes over £2m. Call it a mansion tax if you like, though in London that label gets blurry fast. Scotland’s response is uncertain; with an election looming, dramatic property levies north of the border may be politically tricky.

Savers

Savers get a two‑point squeeze from April 2027 as interest income faces an extra 2% tax, mirroring landlord increases. The personal savings allowance survives, and falling interest rates mean the sting is more symbolic than lucrative for the Treasury. ISAs keep their £20,000 cap, but Cash ISA contributions for under‑65s fall to £12,000, nudging retail investors toward equities.

A consultation on the Lifetime ISA is due in early 2026; its future looks uncertain as the Government weighs whether a product that tries to be both first‑home and retirement vehicle is doing either job well.

Shareholders

Dividend tax also changes from April 2026: the basic rate climbs from 8.75% to 10.75%, the higher rate from 33.75% to 35.75%, while the additional rate stays at 39.35%.

Enterprise Investment Scheme and Venture Capital Trusts see an increase in gross assets limits and annual and lifetime investment limits so more companies can now qualify. But the twist comes with the VCT relief: the upfront income tax perk falls from 30% to 20% from April 2026.

Share exchanges

The anti‑avoidance rules for share exchanges and company reorganisations have been revised with immediate effect. The old rules – where minority holders under 5% could relax and ‘bona fide commercial reasons’ offered cover - have been removed.

In their place, a broader motive test now applies: every transaction is judged by intent, not arithmetic. ‘Arrangements’ are defined so widely they could cover almost anything, and HMRC now has the power to make ‘just and reasonable’ adjustments rather than outright denial. Translation: more uncertainty, more clearance letters, and more nervous dealmakers. Transitional rules offer only a narrow escape route, as clearances obtained before Budget day must be used within 60 days, otherwise the new regime bites.

Employee Ownership Trusts

The Employee Ownership Trust has had its relief clipped. Sellers used to benefit from full capital gains exemption when transferring their company into employee hands; now only half the gain can be sheltered, with the other 50% dragged into charge.

Business Asset Disposal Relief (BADR)

Lastly, let’s not forget last Autumn’s move: Business Asset Disposal Relief was quietly downgraded. The reduced rate of 14% on qualifying gains will rise to 18% from April 2026.

Get in touch

To discuss the impact of these changes and what they mean for you, please get in touch with me at iain.paulin@jcca.co.uk, your usual JC contact, or another member of our Private Client Tax team.