The November 2025 UK Budget, presented by Chancellor Rachel Reeves, includes significant tax increases by 2029-30. Thistle Initiatives’ Investments Team reviews and outlines the key takeaways for firms.
On 26th November 2025, Chancellor Rachel Reeves presented what is a key Budget for her party and for the UK’s finances. Our Investments team has reviewed the Budget and outlined the key takeaways for firms.
Key Takeaways from the November 2025 Budget
Taxation
The Budget will raise taxes by £26bn by 2029-30, bringing the tax take up to an all-time high of 38% of GDP in 2030-31.
- The current freeze on income tax and employer National Insurance contribution thresholds has been extended for another three years until April 2031.
- New mileage tax for electric vehicles from April 2028. In 2028-29, the charge will equal £0.03 per mile for battery electric cars and £0.015 per mile for plug-in hybrid cars, with the rate per mile increasing annually in line with the Consumer Price Index.
- A new high-value council tax surcharge (“mansion tax”) on properties worth over £2 million. This will be an annual charge of £2,500 for properties worth more than £2 million and £7,500 for properties worth more than £5 million.
- The tax rates on dividends, property and savings income will increase by two percentage points. Tax relief on VCTs will reduce from 30% to 20%.
- The writing down allowance main rate in corporation tax will be reduced.
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The Government will introduce permanently lower tax rates for more than 750,000 retail, hospitality and leisure properties. The move will be funded through higher rates on properties worth £500,000 or more, such as warehouses used by online retail giants.
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Changes will be introduced to the taxation of gambling. Remote Gaming Duty is being raised from 21% to 40%, duty on online betting is increasing from 15% to 25%, and Bingo Duty is being entirely abolished from April 2026.
- A reduction of capital gains tax relief on disposals to employee ownership trusts.
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Compensation payments for the Infected Blood Scheme will be exempt from inheritance tax.
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New tax administration, compliance and debt collection measures are anticipated to raise £2.3bn.
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The tax rises are partially offset by a freeze on fuel duty for a further five months, followed by staged increases from 2026.
Universal Credit
The two-child benefit cap within universal credit and child tax credit is being lifted from April 2026.
Minimum Wage
From April, workers over 21 will receive £12.71 an hour as their minimum wage, an increase of 4.1 per cent. Those aged between 18 and 20 will see an 8.5 per cent rise to £10.85 an hour. For those on apprenticeships and those aged 16 to 17, their minimum wage will be up to £8 an hour — a 6 per cent increase.
Eco Energy Scheme
The Energy Company Obligation (ECO) energy scheme will be abolished.
Cash ISAs
The full £20,000 ISA allowance will remain, but £8,000 of this will now be designated exclusively for investment purposes, rather than for cash ISAs. Over 65s will, however, retain the full cash allowance of £20,000.
Help to Save
The Help to Save scheme, which offers people on universal credit a bonus on savings of up to £50 per month, is to be extended and expanded beyond 2027.
Motability
The Motability Scheme has confirmed that it will remove luxury vehicles from its scope.
Next Steps for Firms
Firms will need to consider the impact of these Budget changes on their own businesses and those of their advised clients.
See our separate blog posts for details of IHT and pensions-related Budget announcements.
How Thistle Initiatives Can Help
At Thistle Initiatives, we help firms stay ahead of regulatory change by strengthening their compliance frameworks. Whatever area of financial services you are involved in, we offer you tailored support that’s practical, proportionate, and effective.
If you’d like to discuss how we can support your firm in light of the Budget developments, get in touch at info@thistleinitiatives.co.uk, or call 020 7436 0630 to speak with our team.
Meet the Expert
Keith Maner, Compliance and Technical Manager and CASS Lead 
Keith Maner is a seasoned compliance professional and the CASS lead at Thistle Initiatives. With over 20 years of experience in financial services, Keith specialises in helping firms navigate the complex requirements of the FCA’s Client Assets Sourcebook (CASS).
He also supports a wide range of clients, from newly authorised firms to established institutions, by providing a wide range of regulatory advice.