The Budget is done. Here is what actually happened.

Rachel Reeves has just delivered her Autumn Budget.

There has been a lot of build up and a lot of noise.

Now we finally know what is real.

I have gone through the announcements so you do not have to.

No jargon. No confusion. Just the changes that matter for your money.

Grab a tea (or coffee). Here is the simple version.

💰 The big picture

The government needed to raise £26 billion.

They were never going to find that money without making changes somewhere.

Here is where a lot of it comes from:

• Income tax threshold freezes raising £8 billion

• NIC added to salary sacrifice pensions raising £4.7 billion

• Higher tax on dividends, savings and rental income raising £2.1 billion

• EV mileage tax, business taxes and CGT relief cuts raising £11 billion

• Removing the two child limit costing £5.3 billion

👵 Pensions

NIC added to salary sacrifice pensions above £2,000

From April 2029 only the first £2,000 of employer salary sacrifice stays NIC free.

Everything above that is charged National Insurance for both you and your employer.

What this means:

Pensions remain tax efficient for income tax but become less generous for higher earners or anyone contributing larger amounts.

🏠 Property and landlords

Higher Capital Gains Tax on property

Old rates: 18 percent and 28 percent

New rates: 22 percent and 42 percent

Mansion tax introduced

From 2028 homes worth over £2 million will pay a new council tax surcharge starting at £2,500 and rising above £7,000.

What this means:

Landlords, second home owners and owners of high-value homes will pay more.

📊 Investments and Capital Gains Tax

Higher taxes on investment income

Dividend tax and savings income tax rise by 2 percentage points.

New rates:

• Dividends: 10.75 percent and 35.75 percent

• Savings income: 22 percent and 42 percent

CGT on shares and investments

Old: 10 percent and 20 percent

New: 12 percent and 22 percent

CGT allowance

Remains at £3,000

Who this affects:

Investors outside ISAs, company directors taking dividends and anyone realising capital gains.

💷 ISAs

Annual allowance: Still £20,000

Rule change: From 2027 only £12,000 can go into Cash ISAs.

The remaining £8,000 must go into investments.

Unless you’re over 65.

Bottom line:

Cash savers need to rethink how they use their ISA allowance.

💸 Minimum wage and National Living Wage

From April 2026 the minimum wage and National Living Wage will rise across all age groups.

Here are the new rates and the confirmed percentage increases:

• 21 and over: £12.71 an hour (4.1 percent increase)

• 18 to 20: £10.85 an hour (8.5 percent increase)

• 16 to 17 and apprentices: £8.00 an hour (6 percent increase)

What this means:

Around 2.4 million workers aged 21+ will earn roughly £900 more a year before tax if working full-time.

Younger workers also see meaningful increases, with this being one of the biggest boosts to low-paid workers in years.

👶 Universal Credit two child limit removed

From April 2026 the two child cap will be scrapped.

Families will once again receive support for every child.

This is one of the most expensive social policies in the Budget, costing £5.3 billion a year by the end of the Parliament.

🚗 Mileage tax for electric and hybrid cars

From April 2028 electric and plug-in hybrid drivers will pay a new mileage-based tax.

It will be set at around half the fuel duty rate paid by petrol and diesel cars.

The period of EVs avoiding road taxes is officially over.

🧠 My thoughts

I hate backdoor taxes.

The sneaky freezes. The pension changes. Being told “we’re not raising income tax” while quietly taking more through other routes.

Unless you understand what’s going on, it looks like they have kept their manifesto. But have they?

I also didn’t think it would be as severe as this.

It felt like the same tactic as last year: leak scary ideas, then make the final version softer.

But the reality today is that the tax rises are real and significant.

And honestly, I’m gutted there was nothing on Lifetime ISAs.

It’s one of the areas that needs fixing the most.

What not to do

Do not panic.

Do not sell investments out of fear.

Do not overhaul your finances overnight.

Most changes are gradual.

You have time.

What to do

Read the facts above.

Check what actually affects you.

Make small adjustments if needed over the next few months.

Ask for help if you’re unsure.

QUESTION TIME

Simply hit reply.

Send me a question.

I’ll try and respond to as many as I can in next week’s newsletter

^{DISCLAIMER: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.}