Autumn Budget 2025: Key HMRC Measures and What They Mean

The UK government’s Autumn Budget 2025 introduces a wide range of tax reforms affecting individuals, businesses, pensioners, and the tax advisory sector. Below is a clear and comprehensive summary of all key HMRC announcements included in the document you provided.

1. Personal Tax Changes to Property Income — From 6 April 2027

New, separate tax rates for property income will apply:

• Basic rate: 22%

• Higher rate: 43%

• Additional rate: 47%

The government will work with Scotland and Wales to align property income tax powers with their existing frameworks.

2. Changes to Savings Income — From 6 April 2027

• Basic savings rate increases to 22%

• Higher savings rate increases to 42%

• Additional savings rate increases to 47%

3. Changes to Dividend Rates — From 6 April 2026

Updated Income Tax rates on dividend income:

• Ordinary rate: 10.75% (increase of 2%)

• Higher rate: 35.75%

• Additional rate: unchanged at 39.35%

There is no change in how dividends are reported—only the tax rate changes.

4. State Pension and Simple Assessment

From tax year 2027–28, pensioners whose sole income is the basic or new State Pension (without increments) will not need to pay small amounts of tax via Simple Assessment. More detail will be published next year.

5. Salary Sacrifice for Pension Contributions — From 6 April 2029

Employer and employee NICs will apply to pension contributions made via salary sacrifice above £2,000 per tax year.

Typical pension contributions will remain unaffected. Salary sacrifice contributions continue to be exempt from Income Tax (within limits).

6. Voluntary National Insurance Contributions (NICs) Abroad — From April 2026

Beginning in tax year 2026–27:

• Paying Class 2 NICs for past periods will no longer be allowed.

• New Class 3 NICs applications for past periods will require 10 years of UK residency or NI contributions.

These changes do not affect the general ability to buy voluntary NICs for earlier tax years prior to 2026–27.

7. More Timely Payment for Self Assessment — From April 2029

Taxpayers with:

• ITSA + PAYE income will pay part of their ITSA liability through PAYE during the year.

• ITSA-only income will move to a more regular in-year tax payment model (details in 2026).

No one will pay more tax—only when they pay will change.

8. Help to Save Reform

Help to Save becomes permanent.

From April 2028, eligibility expands to all Universal Credit claimants receiving the child or caring element (or both).

9. Inheritance Tax & Infected Blood Compensation

Compensation scheme payments will be exempt from Inheritance Tax.

First recipients will have two years to gift some or all of the payment without triggering IHT.

10. ISA Reform and Starting Rate for Savings — From 6 April 2027

• Annual cash ISA limit: £12,000 within the overall £20,000 ISA limit.

• Other ISA subscription limits remain unchanged until 5 April 2031.

• Over-65s can continue saving up to £20,000 in cash ISAs.

The starting rate for savings remains £5,000 until 2031.

11. High Value Council Tax Surcharge (HVCTS) — England, From April 2028

A new surcharge for residential properties:

• £2,500 per year for properties valued at £2m+

• £7,500 per year for properties valued at £5m+

The charge applies to owners, not occupants.

12. Closing the Tax Gap & Raising Standards in the Tax Advice Market

Tax Adviser Standards — From 18 May 2026

All tax advisers interacting with HMRC on clients’ behalf must register and meet minimum standards.

Informants Reward Scheme

Rewards of 15–30% of tax recovered in cases over £1.5m, targeting serious non-compliance by large companies and wealthy individuals.

Promoters of Marketed Tax Avoidance

New powers to deter and penalise promoters of avoidance schemes.
A formal consultation will follow in early 2026.

13. Tackling High Street Non-Compliance

Measures include:

• Enhanced enforcement on illicit tobacco/vaping products.

• Criminal interventions targeting fraud and evasion among small businesses.

• A 2026 consultation on POS software standards to address electronic sales suppression.

• £10m funding for Border Force to support enforcement ahead of Vaping Duty.

14. Business E-Invoicing — Mandatory from 2029

Mandatory VAT e-invoicing will apply from 2029.
A roadmap will be published in Budget 2026.
HMRC will work closely with businesses and professionals to design the regime.

15. Vaping Products Duty & Duty Stamps — From 1 October 2026

• Excise duty of £2.20 per 10ml of vaping liquid.

• Mandatory Vaping Duty Stamps for all vaping products manufactured or imported into the UK.

16. Business Systems Integration — Consultation in 2026

A call for evidence will explore ways to increase automated integration between business systems and accounting software.

17. VAT and PAYE Timely Payments — Consultation in 2026

HMRC will consider:

• More use of direct debit

• Mechanisms to ensure taxpayers don’t fall behind on obligations

18. Customs Treatment of Low-Value Imports — From 2029

Customs duty relief on imported goods valued at £135 or less will be removed, making such imports subject to customs duty.

19. Gambling Duty Reforms

• Remote Gaming Duty: rises from 21% to 40% (from April 2026).

• General Betting Duty: new rate of 25% (from April 2027).

• Bingo Duty: abolished from April 2026.

20. Inheritance Tax Reform for Business & Agricultural Property

From April 2026–27:

• Unused APR/BPR allowances become transferable between spouses/civil partners (if first death was before April 2026).

• New features to support representatives managing estates including pensions.

21. Capital Gains Tax on Employee Ownership Trusts

• CGT relief for qualifying disposals to EOTs reduces from 100% to 50% from 26 November 2025.

• From April 2026, individuals/partnerships/trustees must claim incorporation relief on Self Assessment.

22. Anti-Avoidance for Certain Non-Derecognition Liabilities — From 26 November 2025

Tax relief will be denied where arrangements create non-derecognition liabilities primarily to secure tax advantages.

23. Third-Party Data Reporting — From April 2028

HMRC will collect third-party data more frequently, especially:

• Interest income

• Card sales

New reporting requirements begin from April 2028.

Conclusion

The Autumn Budget 2025 introduces some of the most extensive tax reforms in recent years. These changes span personal tax, savings, pensions, NICs, property taxes, VAT, Self Assessment, compliance measures, digitalisation (e-invoicing), and business regulation.

Most changes phase in gradually between 2026 and 2029, giving individuals and businesses time to prepare.