The Chancellor has delivered her latest Budget, setting out a series of tax and policy changes that will shape the financial landscape over the coming years – and the team at JF Hornby & Co has been busy crunching the numbers and breaking down what it all means.
Several measures target different forms of personal income, while others focus on property, investment and long-term fiscal planning. Many will take effect gradually, with some of the most significant shifts scheduled to arrive from April 2026 onwards.
A key feature of the statement was the decision to keep income tax and National Insurance thresholds frozen for an extended period. This continues the policy of fiscal drag introduced in previous years, meaning more people may move into higher tax bands over time even if their earnings only rise in line with inflation.
The Chancellor also confirmed increases to the tax rates applied to dividend income, savings interest and property income. Dividend tax rates will rise by two percentage points from April 2026, while savings and property income will see similar increases from April 2027.
In addition, property income will move to its own dedicated tax schedule, with separate basic, higher and additional rates.
Higher-value homes will also be affected by the introduction of a High-Value Council Tax Surcharge, applying to properties valued above £2 million. This marks a notable shift in how more expensive homes are treated within the council tax system.
For businesses, the Budget outlined a series of adjustments to reliefs and allowances. These include changes to certain capital allowances and revisions to reliefs connected to investment and succession planning.
While some incentives are retained, others have been reshaped, meaning businesses may need to revisit their future investment and planning strategies.
The impact will vary from household to household and business to business, depending on income sources, property ownership and long-term financial planning.
Our full Budget guide provides a detailed breakdown of every change announced, explaining what each measure means in practical terms and when it will come into force.
You can read the complete analysis in our comprehensive guide by clicking this link J_F_Hornby_&_Co_(W-6169321)_BS_Nov25
