Published: Wednesday, November 26, 2025 · 8:56 AM | Updated: Wednesday, November 26, 2025 · 8:56 AM
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As Reeves prepares to deliver her autumn budget, here’s everything we know at a glance:
Introduced in April 2023 and originally due to end in 2028, the freeze pulls more earners into the tax system as wages rise and pushes existing taxpayers into higher bands.
The Institute for Fiscal Studies calculates that prolonging the freeze by two years could raise £8.3bn annually and would mean that someone on the minimum wage became liable for income tax after working just 18 hours a week. Lowering thresholds outright, rather than extending the freeze, would yield still greater sums.
Reports suggest a mansion tax could be introduced, imposing an annual 1% charge on the portion of a property’s value above £2m, equivalent to £10,000 on a £3m home.
There are roughly 160,000 homes in the UK worth £2m or over, according to Zoopla. This equates to 0.6% of all homes.
Another measure that is in the cards is revaluing and introducing a council tax surcharge for properties in bands F, G and H.
Reeves is reportedly plotting to reduce the amount of money people can sacrifice from their pay cheques to put in their pension pots without paying national insurance (NI).
The chancellor is considering a cap of £2,000 per year on NI-free salary sacrifice, according to the Financial Times, after which national insurance would be applicable. Officials believe the change could raise between £3bn and £4bn annually, but it will also shrink savers’ long-term pension pots.
Reeves is set to make changes to cash ISA. The allowance will be cut from £20,000 to £12,000, according to a report in the Financial Times. However, the chancellor has reportedly dropped her plan to make the 20% UK equities allocation mandatory.
Reeves is expected to increase the tax rate on dividends in this year’s budget. Currently, dividends received by individuals are taxed in addition to their income. The basic rate for dividends is 8.75% for those earning between £12,571 and £50,270. The higher rate stands at 33.75%, while the additional rate for the top income band is 39.35%.
Dividend tax rates were last raised in 2022, when the previous Conservative government increased them by 1.25 percentage points.
A one percentage point increase in the basic rate alone would bring in roughly £400m, according to the Institute for Fiscal Studies (IFS).
Reeves could scrap the limit entirely or extend the benefit to all families, irrespective of the number of children, but at a lower level.
The government could cut the current 5% rate of VAT charged on energy or reduce regulatory costs, therefore bringing down bills for customers
Milkshake tax – The end of the sugar tax exemption on milk-based drinks from 1 January 2028 has been confirmed
Gambling tax – The chancellor has been urged to significantly raise taxes on the “most harmful” forms of online gambling
Tourism tax – A nightly tourism tax on hotel stays and Airbnb-style rentals in England, following similar moves in Scotland and Wales is reportedly in the works.
Alcohol duty – There are also reports that Reeves will increase the cost of a drink by raising alcohol duty.
Stamp duty holiday for share listings – Reeves is expected to announce a three-year stamp duty exemption for new stock exchange listings, incentivising companies to list in the UK.
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