"Reeves confirmed that income tax and National Insurance thresholds will be frozen until 2031, extending the existing freeze by an additional three years. The move will gradually pull more earners into higher tax bands as wages rise. The annual cash ISA allowance for under-65s will be capped at £12,000, with the remaining portion of the £20,000 limit available only for investment ISAs. Dividend tax rates will rise by two percentage points from April, while all tax rates on savings income will increase from 2027."
"Reeves announced that the controversial two-child benefit cap will be scrapped from April, allowing families on Universal Credit and tax credits to receive payments for all children. The National Living Wage will rise by 4.1% to £12.71 for over-21s. Rates for 18-20-year-olds will jump 8.5% to £10.85, part of a longer-term plan for a single adult wage rate. State pensions will increase by 4.8% in April under the triple lock, outpacing current inflation."
Income tax and National Insurance thresholds will be frozen until 2031, extending the existing freeze and pulling more earners into higher tax bands. The annual cash ISA allowance for under-65s will be capped at £12,000, with remaining allowance restricted to investment ISAs. Dividend tax rates rise by two percentage points from April and all savings income rates increase from 2027. The two-child benefit cap is removed from April. National Living Wage and younger rates rise; state pensions increase by 4.8% under the triple lock. Salary-sacrifice NI exemption will be capped at £2,000 from 2029. High-value properties face a new council tax surcharge; rental income tax increases from April 2027. The 5p fuel duty cut is extended until September 2026.
#income-tax--national-insurance #isas-and-savings-taxes #benefits-and-pensions #housingproperty-taxation #wages-and-living-wage
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