UK AUTUMN BUDGET 2025: ISA & PROPERTY TAX UPDATES
- ASESA Solutions Ltd
- 3 days ago
- 2 min read
As part of our ongoing coverage of the UK Autumn Budget 2025, this edition focuses on further changes affecting savings, investments, and property ownership.
ISA Allowance Changes
An Individual Savings Account (ISA) allows you to save or invest money tax-free, meaning you don’t pay income tax on interest or tax on investment gains. The main types of ISAs are Cash ISAs (for savings), Stocks & Shares ISAs (for investments), Lifetime ISAs, and Innovative Finance ISAs.
From April 2027, the annual Cash ISA allowance for under-65s will be reduced to £12,000. However, the overall ISA allowance will remain at £20,000 per tax year and is frozen at this level until 2030/31. This means savers can still invest up to £20,000 each year, but only £12,000 can go into cash, with the remaining £8,000 needing to be placed into other ISA types, such as a Stocks & Shares ISA. Those aged 65 and over are not affected and can continue to save up to £20,000 in Cash ISAs.
Savers may wish to maximise current allowances before 2027 and consider investment-based ISAs for long-term goals.
Stamp Duty & Property-Related Tax Changes
The UK Autumn Budget 2025 introduced a new annual surcharge on high-value homes, called the High Value Council Tax Surcharge. From April 2028, owners of residential properties worth £2 million or more in England will pay this extra annual charge in addition to regular council tax. The surcharge starts at £2,500 per year for homes valued just over £2 million and rises to £7,500 per year for properties worth over £5 million. Standard Stamp Duty Land Tax (SDLT) and existing property taxes remain unchanged.
This change affects long-term cashflow if you own or plan to buy a high-value property, so include it in wealth and tax planning discussions.
Conclusion
The ISA allowance changes and the introduction of a high-value property surcharge highlight the Government’s continued focus on how individuals save, invest, and hold wealth. While these measures do not take effect immediately, early awareness can help with effective long-term financial and cashflow planning. In our next newsletter, we will highlight further key measures from the Autumn Budget 2025 and explain how they may affect you.