UK Budget: Overview of the Latest Tax and Business Reforms
The Chancellor has presented her second Budget under the Labour Government, setting out a wide-ranging programme aimed at easing financial pressures on households, supporting public services and putting the public finances on a more sustainable path. The announcements offer a blend of support for businesses and new costs for individuals, particularly those with property or investment income.
Headline measures include;
Personal Tax, Wealth & Investments
Individuals will see the continued freeze of several tax thresholds and revisions to a number of investment-related reliefs. While the framework of the system remains largely unchanged, the cumulative effect of these measures is expected to build over the coming years.
Landlords & Property Owners
A new tax rate for rental income is scheduled for April 2027, followed by the introduction of a High Value Council Tax Surcharge in 2028 for properties worth more than £2 million. These changes are likely to influence long-term planning for landlords and owners of higher-value homes.
Salary Sacrifice Pension Changes
Significant reforms to salary sacrifice pension arrangements are set to take effect from April 2029. Employers and payroll teams, especially those with generous pension provisions, are advised to start preparing for the operational and financial implications ahead.
Employment Taxes & Payroll
Income Tax and National Insurance thresholds will remain fixed until 2028, extending the impact of fiscal drag. Adjustments to the National Minimum Wage, National Living Wage and Plan 2 student loan repayment thresholds will also shape payroll considerations going forward.
Business Tax Updates
For companies, the Budget reinforces the direction already established in the Corporate Tax Roadmap. Notable changes include updates to Capital Allowances, new penalties for late Corporation Tax submissions and revised limits for Enterprise Management Incentives (EMI).
Read the full guidance on our Affinia site to understand what these changes mean for you or your organisation.
