The Budget 2025

 

Yesterday, the little red box with big red implications was finally opened, as the Chancellor delivered the 2025 UK Budget against a backdrop of slowing global growth, tightening fiscal conditions, and continued pressure on public finances. 

With inflation forecast to fall to around 2.5% next year and a renewed emphasis on investment-led growth, this year’s Autumn Budget focused mainly on raising revenue through tax reforms while providing selective support for specific industries. 

With decades of advisory experience, Wilder Coe is uniquely positioned to help businesses and individuals navigate the financial, regulatory, and commercial implications of these changes. This guide summarises the key points from the Budget and highlights relevant measures for your sector, but first, let’s review the most discussed elements… 

 Key Budget Highlights 

• National Minimum Wage: Increase of 4.1% to £12.71 per hour. 

• Tax Thresholds: Frozen for an additional three years. 

• Taxes on Dividends, Savings, and Property: Rising by 2% from April 2026. 

• Gaming Duty: Increase to 40%. 

• Betting Tax: rises by 25%. 

• Electric Vehicle Charge: From April 2028, 3p per mile for electric car drivers. 

• Capital Gains Tax: Tax break for setting up Employee Ownership Trusts (EOTs) reduced to 50%. 

• Pensions: From April 2029, National Insurance contributions on salary-sacrifice pensions above £2,000. 

• Fuel Duty: Remains frozen for another year. 

• Housing: Mansion tax introduced on properties worth more than £2 million. 

• Education: Apprenticeship training for under-25s to be fully funded for SMEs. 

• Businesses: Business rates cut for 750,000 retail, hospitality, and leisure properties. 

• Stamp Duty: Relief extended to LSE-listed companies. 

Renewable Energy 

Businesses in the renewable and clean-tech sectors will continue to receive capital allowances. This includes the extended 100% First-Year Allowance for zero-emission vehicles and charging points until 2027. Ongoing R&D and investment incentives will support project viability, while consistent policy will help secure financing for green initiatives.  

Corporate Finance 

Changes to business rates, capital allowances, and targeted investment incentives will influence corporate finance decisions. Corporation tax rates remain steady, but Wilder Coe can assist clients with structuring acquisitions, mergers, and property investments to optimise tax efficiency, manage costs, and maintain compliance. 

Forensic Accounting and Dispute Resolution 

The Budget highlights the importance of compliance and risk management, likely increasing demand for forensic accounting and dispute resolution services. Our advisers can support businesses in navigating tax investigations, resolving transaction disputes, and implementing risk-mitigation processes. 

Property 

If you have a high-value residential property portfolio, consider the new Mansion Tax, which applies to properties worth over £2 million from 2028/29. Separate higher property income tax rates from 2027/28 will affect buy-to-let strategies and investment plans. It’s wise to plan now, accounting for changes to property income reliefs from April 2027.  

Retail and Hospitality 

While rising wages and frozen thresholds may decrease margins, reliefs and capital allowances can certainly help. Businesses should plan staffing and operational costs to address higher employment expenses. 

Charities and Not-for-Profits 

Relief for donations and charitable income remains stable, providing much-needed predictability. At the same time, though, tighter compliance and reporting expectations should be considered as HMRC strengthens its powers to tackle tax avoidance and fraud.  

PR, Advertising, and Marketing 

Agencies may continue to benefit from existing creative reliefs. However, rising wages and NIC costs – especially for younger employees – may increase operational expenses, requiring careful planning to maintain margins and competitive advantage. 

High-Net-Worth Individuals 

The combination of the High Value Council Tax Surcharge, higher taxes on property, dividends, and savings income, and reduced CGT relief for EOTs increases exposure for high-net-worth individuals. Reviewing personal structuring, estate planning, and intergenerational wealth strategies is strongly recommended. 

Technology 

Tech firms will benefit from a stable incentive environment, capital allowances, and investment support. Companies with EV fleets should account for extended EV allowances and upcoming salary-sacrifice NIC changes. Planning for R&D claims and capital investment remains essential for maximising efficiency. 

Take Action Today 

Don’t wait until these measures take effect. Contact our team to: 

• Review your personal and business tax position. 

• Assess the impact of new thresholds, rates, and relief changes. 

• Identify opportunities to optimise investments, ISAs, and pension contributions. 

• Plan for the High Value Council Tax Surcharge and other wealth management considerations. 

Book your consultation now to ensure you are fully prepared for the 2025 Budget changes.