Employment Tax

United Kingdom | Key tax announcements from the Autumn Budget 2025

Summary

On 26 November 2025, the Chancellor of the Exchequer delivered the Autumn Budget, setting out the UK Government’s tax and spending plans. This summary highlights key measures relevant to UK employers, employees, and individuals, including considerations for global mobility.

The detail

This Budget introduces a range of tax measures aimed at boosting revenue and widening the tax base. In the weeks preceding the announcement, there were expectations of possible increases in national insurance contributions (NIC), income tax rates, or VAT. The changes were less dramatic than feared, but several measures will require careful review by employers and individuals:

1. Personal tax thresholds: Income tax bands and NIC limits will remain frozen for an additional three years, increasing the impact of fiscal drag.
2. Investment income: Tax rates on dividends, property income, and savings income will rise by 2%, increasing the overall burden on investment income.
3. Pension contributions: Salary-sacrificed pension contributions exceeding £2,000 will be subject to NIC from 2029, aligning them with standard employee contributions.
4. Class 2 NIC: Voluntary Class 2 NIC for individuals living abroad will be abolished.
5. High-value property surcharge: A new surcharge, sometimes referred to as a “mansion tax,” will apply to properties valued above £2 million, charged on the owner rather than the occupier.

Full Guide

You can read the comprehensive guide to the Autumn Budget 2025 here: UK Autumn Budget 2025 – Key Tax Announcements (PDF)

On-Demand Webinar

Vialto Partners hosted a webinar on 27 November 2025 covering the key Autumn Budget announcements and their implications for employers, employees, and individuals. The session is now available for on-demand viewing: Watch the webinar (Registration required)

Contact us

If you would like to discuss any of the points outlined above, please reach out to your Vialto Partners point of contact, or alternatively:

Martin Muhleder
Partner, Tax

Matthew Harrison
Partner, Private Client

Matthew Crawford
Partner, Employment Tax

Ben van den Dungen
Director, GMS & Private Client

Sarah O’Riordan
Director, GMS Financial Services

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Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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