The Chancellor has delivered her second Budget under the Labour Government, unveiling a package of measures aimed at easing the cost of living, strengthening public services and stabilising public finances. While businesses will see some welcome support, many individuals and property owners face new taxes or tightened reliefs.
Key changes announce include:
Personal Tax, Wealth & Investment
A series of changes affecting individuals centres on frozen thresholds and adjustments to investment-related reliefs. Although structural changes are limited, the long-term impact is expected to be significant due to the extended period over which they will apply.
Landlords & Property Owners
From April 2027, rental income will be subject to a new income tax rate, and from 2028 a High Value Council Tax Surcharge will apply to homes valued over £2 million. These measures mean landlords and high-value homeowners should begin reviewing portfolios, tax planning strategies and future financial exposure.
Salary Sacrifice Pension Reform
A major overhaul of salary sacrifice pension arrangements is due in April 2029. With higher contribution schemes likely to be most affected, employers and payroll providers are encouraged to start assessing operational and financial implications now.
Employment Taxes & Payroll
Income Tax and National Insurance thresholds will remain frozen until 2028, extending fiscal drag for employees. The Budget also confirmed increases to the National Minimum and Living Wage, alongside changes to Plan 2 student loan repayment thresholds.
Business Tax Measures
For companies, the Budget remains aligned with the Corporate Tax Roadmap. Updates to Capital Allowances, late filing penalties for Corporation Tax and revised EMI limits form the core of business-focused reforms.
To find out more about how today’s announcement will affect you as an individual, business or property owner read our full guidance here.
