The Autumn Budget 2025 arrived at a moment when many businesses across Yorkshire have been asking for the same things: stability, clarity and a bit of breathing space to plan ahead.
While this Budget doesn’t introduce dramatic tax hikes, it does bring a series of quieter shifts - frozen thresholds, targeted incentives and a few new rules-that will influence everyday decisions for SMEs and the personal finances of those who run them.
Below, we’ve outlined the key announcements and what they could mean for your business and your long-term plans.
Capital gains tax changes: a shift in the employee ownership landscape
What’s changing?
Relief on sales to Employee Ownership Trusts (EOTs) will fall from 100% to 50% for transactions completed on or after 26th November 2025. Business Asset Disposal Relief (BADR) can’t be used on the remainder, which means sellers could now face a 12% CGT charge where previously there was none.
What this means for Yorkshire business owners
Selling to an EOT is no longer the wholly tax-free route it once was. If succession planning has been on your radar, it may be worth revisiting your timeframe or weighing up alternative exit routes. For some, bringing a sale forward could still make sense; for others, a different structure might now be more suitable. Either way, it’s a good moment to seek guidance and explore your options.
Personal taxes: frozen thresholds and the rise of “fiscal drag”
What’s changing?
Although Income Tax, National Insurance Contributions (NICs) and VAT rates remain unchanged, key thresholds will stay frozen until 2031. This includes the Personal Allowance, higher-rate and additional-rate bands, as well as NIC thresholds for employees, employers and the self-employed. Inheritance tax (IHT) allowances are also frozen, though unused business and agricultural property relief will become transferable between spouses from 2026.
What this means for you
Even with no rate increases, more of your income could slowly fall into higher tax bands as salaries, profits or asset values rise. For owner-managers across Yorkshire, this creates a long, gentle tightening that can become more noticeable as your business grows-making forward planning more important than ever.
Savings and investments: less headroom, higher costs for some
What’s changing?
From April 2029, salary-sacrifice pension contributions above £2,000 a year will attract NICs, reducing the benefit for higher contributors. Cash ISA limits for under-65s will drop from £20,000 to £12,000, while those aged 65+ retain the full allowance. The overall ISA limit stays at £20,000, meaning many savers may shift more towards investment ISAs to take advantage of the additional £8,000 allowance.
From 2026/27, tax on property, dividends and savings income will rise by 2%. Meanwhile, Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) schemes will be extended beyond their sunset dates with existing reliefs unchanged.
What this means for you
If you make substantial pension contributions through salary sacrifice, the NIC change may reduce the appeal when it comes into play in 2029. Under-65s will also need to re-evaluate their cash savings strategies and consider opening stocks and shares ISAs if appropriate for them. Landlords, investors and business owners who draw dividends will feel the extra 2% tax and so could benefit from taking advice on how best to structure their wealth going forward.
On a more positive note, the ongoing availability of Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) remains a valuable planning tool for those looking to support growth businesses.
Property: a new annual tax for high-value homes
What’s changing?
A new annual charge will apply to residential properties worth more than £2 million from 2028, starting at £2,500 and rising to £7,500 for homes over £5 million. The charge will increase each year in line with inflation, and it will also apply to properties owned through companies.
What this means for you
If high-value residential property forms part of your wealth or succession planning, this new charge becomes another moving part to consider. Reviewing how property is held, used and passed on could help prevent unexpected costs later.
Business tax: updated allowances, shifting deductions and local incentives
What’s changing?
From April 2026, the main writing down allowance for many assets will drop from 18% to 14%, reducing annual tax relief on new investment. Alongside this, a new 40% first-year allowance will apply to certain leased assets (not including second-hand items or cars).
Business rates relief for retail, hospitality and leisure becomes permanent, while the Leeds City Fund will be designated a 25-year Business Rates Retention Zone-allowing more locally raised revenue to stay in the region.
From 2029, the £135 tax exemption on small overseas packages will be removed, nudging import costs slightly upwards.
What this means for you
For small businesses, these updates bring a mix of tighter tax relief and stronger local support. With writing-down allowances falling from 18% to 14%, investing in new equipment may bring slightly less annual tax relief - but the new 40% first-year allowance on certain leased assets could soften the blow for firms that prefer to lease.
Permanent business rates relief is great news for retail, hospitality and leisure, offering long-term certainty, and the Leeds City Fund’s new retention zone means more locally raised money can stay in the area. From 2029, small imported packages will get a bit pricier as the £135 tax exemption disappears, so businesses relying on overseas supplies should plan ahead.
Payroll: rising pensions, higher wage costs and tighter homeworking rules
What’s changing?
State pensions will increase by 4.8% under the triple lock. At the same time, tax relief for homeworking expenses will end unless employers choose to cover these costs directly. National Minimum and Living Wage rates will also increase across all age groups.
What this means for you
These adjustments call for a careful payroll review. If you employ hourly workers or apprentices, rising wage levels will need to be factored into budgets. You may also decide to reimburse homeworking expenses if flexible working remains important to your team. Taking action early will help smooth the transition into April and support staff retention.
Talent and skills: wider access to EMI and fully funded apprenticeships
What’s changing?
More SMEs, particularly fast-growing businesses, will gain access to the Enterprise Management Incentive (EMI) scheme. Apprenticeship funding will also increase, with eligible under-25s fully funded for SMEs.
What this means for you
If attracting and keeping talented people is high on your agenda, these developments are encouraging. EMI options become easier to offer and manage, helping you reward key team members. Fully funded apprenticeships also create a low-cost route to developing future skills in-house.
Transport: EV charges, fare freezes and changes to ride-hailing VAT
What’s changing?
Regulated rail fares will be frozen for a year. From April 2028, however, electric vehicles will face new mileage-based charges: 3p per mile for fully electric cars and 1.5p for plug-in hybrids. The 5p fuel duty cut remains until August 2026. VAT will soon apply to the full value of Uber and Bolt fares rather than just the operator’s margin, increasing journey costs slightly.
What this means for you
If your business runs EV vehicles, it’s worth building these upcoming charges into long-term budgets. Even with the new costs, EVs should remain an attractive option. Higher VAT on ride-hailing may also prompt a small update to travel and expenses policies.
The bigger picture: a “tax and save” budget focused on stability
The Chancellor’s approach effectively doubles the UK’s fiscal headroom to around £26 billion by raising taxes from 2027–28 while keeping spending growth modest. The aim is clear: maintain stability, reduce uncertainty and give businesses more confidence to invest.
For SMEs in Yorkshire, the absence of major shocks will be welcome. Still, the combined effect of frozen thresholds, higher investment taxes and new property and income rules will add complexity-especially for those with property portfolios, investment income or plans for future succession.
What should Yorkshire businesses do next?
Most of these changes are incremental rather than dramatic - but together, they will influence decisions around investment, payroll, savings, succession and personal planning. Taking stock now, before the new rules fully take effect, can help protect profits and reduce unwelcome surprises.
If you’re unsure how these reforms affect you - or want to turn them into strategic advantage - now is the time to get expert support. Our integrated, multidisciplinary team brings together decades of experience advising businesses and their owners across Yorkshire. Whether you need guidance, reassurance, or clarity on your next steps, we’re here to help you navigate the changes with confidence and spot opportunities for growth that others might miss.
Get in touch with our team today - and put trusted, joined-up expertise behind your decisions for the year ahead.
